Pay low-income families more to boost economic growth, says IMF
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.
[…] an increase in the income share of the bottom 20% is associated with higher GDP growth.
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