Notorious commie group Standard & Poor's says inequality hurting economic growth:
QuoteOur 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.
https://www.globalcreditportal.com/ratingsdirect/renderArticle.do?articleId=1351366&SctArtId=255732&from=CM&nsl_code=LIME&sourceObjectId=8741033&sourceRevId=1&fee_ind=N&exp_date=20240804-19:41:13
Not enough growth in mid-tier manufacturing. This is the sweet spot where non college grads earn reasonable wages that suppresses the income gap.
Or is it dampened economic growth is increasing income equality?
I, for one, am shocked that trickle-down economics is leading to growing income inequality.
Quote from: fsquid on August 06, 2014, 10:08:50 AM
Or is it dampened economic growth is increasing income equality?
No doubt that contributes, but it's been rising for some time now:
(http://cdn.theatlantic.com/static/mt/assets/business/cbpp%20income%20inequality%202011.png)
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.
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?