Inequality Reduces Growth

Fuest, Clemens (2017): Inequality Reduces Growth. In: Frey, Bruno S.; Iselin, David (eds.) : Economic Ideas You Should Forget. Cham (Schweiz): Springer. pp. 63-64

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.

• Item Type: Book Section
• Keywords: Gross Domestic Product; Income Inequality; Welfare State; Gini Coefficient; Great Equality
• Faculties: Economics > Chairs > Chair for Public Economics
• Subjects: 300 Social sciences > 330 Economics
• ISBN: 978-3-319-47457-1; 978-3-319-47458-8
• Place of Publication: Cham (Schweiz)
• Language: English