Logo Logo
Help
Contact
Switch Language to German
Fuest, Clemens (2017): Inequality Reduces Growth. In: Frey, Bruno S.; Iselin, David (eds.) : Economic Ideas You Should Forget. Cham (Schweiz): Springer. pp. 63-64
Full text not available from 'Open Access LMU'.

Abstract

An economic idea that should be forgotten is the claim that there is a systematic and mechanical negative impact of inequality on growth. Recent studies published by the OECD and the IMF make this claim and conclude that greater equality would boost growth. The OECD calculates, for example, that Germany’s gross domestic product (GDP) would now be 6 % higher if inequality had not increased since 1985.