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What evidence did you have in mind? A casual glance at the predicament faced by lower income people in the United States, compared to more redistributionist OEC
by sjy 10y ago
What evidence did you have in mind? A casual glance at the predicament faced by lower income people in the United States, compared to more redistributionist OECD nations, suggests that redistribution (particularly universal healthcare funded by higher income taxes) can significantly improve living standards for those worse off. The first result I found when searching for 'income inequality vs growth', a summary of 2011 and 2014 IMF studies in the Economist [1], suggests that while redistribution may impede growth, inequality itself is associated with lower growth per person and therefore redistribution which actually reduces inequality is beneficial. It's hard to say that there is 'overwhelming' evidence that increased redistribution slows wage growth for those with the lowest income.
[1] http://www.economist.com/news/finance-and-economics/21597931-up-point-redistributing-income-fight-inequality-can-lift-growth-inequality http://www.economist.com/news/finance-and-economics/21597931...
- Jabanga 10y agoI don't have time at the moment to compile all of the sources I've seen indicating that income redistribution harms growth, so I can't provide much substance to support my claim. I'll just say that the decline in wage growth, and the evidence I've seen suggesting redistributionist policies are the culprit, is a Western-wide phenomenon, extending to Canada and Western Europe as well.