Davros
Silver Member
- Jul 24, 2015
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The researchers do not say that income inequality hurts economic growth. They say lack of income growth within the bottom 95% of wage earners harms the economy. Not quite the same thing.
The research claims that economic growth in the past was fueled by increasing personal debt (not to mention national debt). To me then that indicates that economic growth of the past was an unsustainable bubble, just like the housing market, fueled by the same, excessive debt.
What's your solution to this problem?
Seems to me the best solution would be to increase exports, which could be achieved by free trade deals. I don't think punishing CEOS for their income would accomplish much. Wealth redistribution could put more money in the hands of those who will spend more, but I don't think that would help because the economy needs investors as well as buyers of goods.