Friday, December 19, 2014
This article talks about how the wealth gap holds back economic growth. The west’s leading economic thinktank on Tuesday dismissed the concept of trickle-down economics as it found that the UK economy would have been more than 20% bigger had the gap between rich and poor not widened since the 1980s. The OECD said that the richest 10% of the population now earned 9.5 times the income of the poorest 10%, up from seven times in the 1980s. It seems that the theory of trickle down economics has been proven to not work, or it at least causes more income inequality
http://www.theguardian.com/business/2014/dec/09/revealed-wealth-gap-oecd-report
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This just proves not enough wealthy individuals give back to the poor. The concept of Trickle-Down economics will never be a plus for overall economic growth.
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