How Much Inequality Is Necessary for Growth? - HBR - 3 views
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hcps-ingramsk on 01 Feb 15"On one hand, entrenched inequality threatens to create an underclass whose members' inadequate education and low skills leave them with poor prospects for full participation in the economy as earners or consumers. It can cause political instability and thus poses risks to investment and growth. On the other hand, some argue that because inequality puts more resources into the hands of capitalists (as opposed to workers), it promotes savings and investment and catalyzes growth." This article discusses important benefits and drawbacks of income inequality. It shows that this is a matter to think about, and there is no simple solution.