Finally a study that proves the minority holding wealth is not the best way forward for the economy. Of course, everything still has to be justified in terms of the economy in a society obsessed with the health of the economy. We are a long way from measuring alternative signs of success other than GDP, but at least the penny has finally dropped (Scuse the pun) that a lot of the focus needs to shift from welfare cuts and benefits reductions to tax on the other end of the pay scale too. See The Guardian news story below:
IMF: income equality would boost growth
A new IMF study suggests increased income inequality is bad for growth. The report 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. It claims the redistributive role of fiscal policy could be reinforced by greater reliance on wealth and property taxes, more progressive income taxation, removing opportunities for tax avoidance and evasion. The Guardian Page: 21
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