It is now well-known that income inequality is hazardous to human health and a host of other social outcomes, as demonstrated by Richard Wilkinson and Kate Pickett’s book The Spirit Level and Equality Trust organization (some great resources and slides there, too).
Now a new study by the International Monetary Fund has found that higher rates of income inequality are strongly associated with shorter periods of economic growth: e.g., that greater equality is associated with more sustainable and longer-lasting economic growth.
The research paper, Inequality and Unsustainable growth: Two Sides of the Same Coin? is relatively short (20 pages) , provides robust quantitive evidence with qualitative analysis, examines reasons for this relationship and suggests some tentative policy implications.
- G20 meeting of world finance ministers too little too late (February 15th, 2015)
- ROCHON: Greece, Syriza and the Euro (February 10th, 2015)
- ROCHON: Harper in closet over the economy as Canada heads toward another recession (February 6th, 2015)
- Rochon Asks: “Is the Canadian economy unraveling?” (February 5th, 2015)
- Low Oil Prices, Good or Bad for Canada? (January 14th, 2015)