Posted on 06/15/2015 3:52:05 PM PDT by 2ndDivisionVet
Study indicates stagnating incomes of the poor and middle classes could have been instrumental in the financial crisis.
The idea that increased income inequality makes economies more dynamic has been rejected by an International Monetary Fund study, which shows the widening income gap between rich and poor is bad for growth.
A report by five IMF economists dismissed “trickle-down” economics, and said that if governments wanted to increase the pace of growth they should concentrate on helping the poorest 20% of citizens.
The study – covering advanced, emerging and developing countries – said technological progress, weaker trade unions, globalisation and tax policies that favoured the wealthy had all played their part in making widening inequality “the defining challenge of our time”.
The IMF report said the way income is distributed matters for growth. “If the income share of the top 20% increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down. In contrast, an increase in the income share of the bottom 20% is associated with higher GDP growth,” said the report....
(Excerpt) Read more at theguardian.com ...
Why not everyone? IMF is dumber than dirt.
Perhaps low income workers might get a high school education and trade school behind them to up their incomes.
That sounds hard. No, I think we’ll just keep getting checks, watching TV, playing video games, drinking 40’s and collecting baby mamas.
We offshored our production jobs, the key to wealth creation.
Doubling down on stupid. But as long as you can keep the printing presses going with no accountability, why not spend future generation’s money? /s
Doubling down on stupid. But as long as you can keep the printing presses going with no accountability, why not spend future generation’s money? /s
It may be easier and cheaper to cut out the middle man (bureaucrats) and give the money directly to the families.
This is the end game.
The whole idea of work is an anachronism.
When you can just print money endlessly, there is no logical reason for people to work, pay taxes, make anything, build anything, fix anything .... just give me money.
This is all planned
Put yourself in the place of just about ANY consumer products company (General Mills, Apple, etc) or retail store (Walmart, Target, etc). All they care about is growth and profits. They do not care where the $$ comes from. It is all green to them, whether it comes from people who actually earn it or comes from people on the dole. In fact, by their reckoning, it is probably quicker and more efficient for Government to just GIVE people the $$ to spend. At one point in time, these companies might have cared who their customers were (as productive citizens are better for the country), but it has not been that way for some decades now.
In the end, more Government clients means more profits for them. It’s Capitalism gone wild.
Maybe we just STOP DEVALUING THE DOLLAR EVERY YEAR!!
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