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Wednesday, June 11, 2014

Why Income Redistribution Doesn't Hurt Growth

Me, at MoneyWatch:

Why income redistribution doesn't hurt growth, by Mark Thoma: Thomas Piketty's book "Capital in the Twenty-First Century" documents the increase in inequality in recent decades, and it has rekindled an old debate about the effects of income redistribution on economic growth. Until recently, most economists believed there's a trade-off between equity and efficiency and that the redistribution of income would lower economic growth. ...
But as the recent paper "Redistribution, Inequality, and Growth" by Jonathan D. Ostry, Andrew Berg, and Charalambos G. Tsangarides of the International Monetary Fund explains, there are also reasons to believe the redistribution of income can enhance economic growth in some cases. ...

    Posted by on Wednesday, June 11, 2014 at 06:01 AM Permalink  Comments (58)


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