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> Some economists have argued that we can lessen inequality only by giving up on growth and efficiency. But recent research, such as work done by Jonathan Ostry
by dv_dt 8y ago
> Some economists have argued that we can lessen inequality only by giving up on growth and efficiency. But recent research, such as work done by Jonathan Ostry and others at the International Monetary Fund, suggests that economies with greater equality perform better, with higher growth, better average standards of living and greater stability. Inequality in the extremes observed in the U.S. and in the manner generated there actually damages the economy.
An interesting passage in the article.
Edit: I think that refers to this paper, am not sure if that's the only applicable reference.
https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2016/12/31/Redistribution-Inequality-and-Growth-41291 https://www.imf.org/en/Publications/Staff-Discussion-Notes/I...
- neolefty 8y agoIt sounds like a "moderation" issue — you need some possibility of inequality to have a healthy level of motivation, but too much inequality leads to poverty and limits human potential!
- dv_dt 8y agoI don't think you need inequality per-se, you need some amount of direct reward, but some amount of social reward for economic endeavors. Starving out either side of that I think yields poorer overall results.