The greatest economic rate of growth in the USA occurred between 1945 and 1970. Coincidentally, this was also when the USA had the highest tax rates on the wealthiest individuals, indeed under Eisenhower as high as 91%. Recent developments since 1980 seem to indicate taxing people who actually work for a living at a greater rate than those rich parasites who destroy companies, offshore jobs, lay off workers, and buy politicians like both frequently buy prostitutes results in lower growth.
Yes, wealth inequality seems to be the greatest roadblock to economic growth.
quote:
Wikipedia on Economic Inequality:
According to International Monetary Fund economists, inequality in wealth and income is negatively correlated with subsequent economic growth. A strong demand for redistribution will occur in societies where much of the population does not have access to productive resources. Rational voters have to internalize this dynamic problem of social choice. 2013 Economics Nobel prize winner Robert J. Shiller said that rising inequality in the United States and elsewhere is the most important problem faced in the U.S. and elsewhere. High levels of inequality prevent not just economic prosperity, but also the quality of a country's institutions and high levels of education.
| Berg and Ostry of the International Monetary Fund found that of the factors affecting the duration of growth spells in developed and developing countries, income equality is more beneficial than trade openness, sound political institutions, or foreign investment. |
To add insult to injury, productivity of U.S. workers has been increasing (as we'd expect) but incomes have been immobile since around the 1970s:
The only conclusion to draw from all this is that the additional productivity has been going to the owner class for nearly the past half century; that the working class has
not been compensated for a large share of their productivity.
And what do we call it when people are not compensated for the productivity of their labor?
Slavery of course.
The wealth inequality in the U.S. is not only economically stupid, but morally disgusting.
Love your enemies!
™ Version 4.2
