Increasing Income Inequality Is Dampening U.S. Economic Growth

[finehoe]

Notorious commie group Standard & Poor's says inequality hurting economic growth:

Our review of the data, as well as a wealth of research on this matter, leads us to conclude that the current level of income inequality in the U.S. is dampening GDP growth, at a time when the world's biggest economy is struggling to recover from the Great Recession and the government is in need of funds to support an aging population.

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[spuwho]

Not enough growth in mid-tier manufacturing. This is the sweet spot where non college grads earn reasonable wages that suppresses the income gap.

[fsquid]

Or is it dampened economic growth is increasing income equality?

[Josh]

I, for one, am shocked that trickle-down economics is leading to growing income inequality.

[finehoe]

Or is it dampened economic growth is increasing income equality?

No doubt that contributes, but it's been rising for some time now:

[fsquid]

I think 70% of our economy is consumer spending, so when your top 10% basically hides their money under a mattress, it will effect economic growth.

We need to reduce the inducements to put the money in a mattress and increase the inducements to put the money, and with it, more people, to work.

[spuwho]

Top 1% is an issue.

Is it cultural?  Greed?

Compensation has a correlation with risk. Are the demands at the top so tough and risk so high it demands such a pay premium?

Have we taken on a "free agent" mentality where the "what have you done lately" attitude rules?

Is it the culture where the "show me the money" where short term I want it now has taken over?