Want to improve the economy? Reduce income inequality
The New York Times reported yesterday on the growing body of economic research that suggests that income inequality may be the root of America's economic woes.
Findings point to income inequality as not just a path to an unequal society, but also a direct route to "less stable economic expansions and sluggish growth."
As reported in the Times:
“What worries me is the idea that we’re in a vicious cycle,” said Joseph E. Stiglitz, a Nobel laureate in economics who has studied inequality extensively. “Increasing inequality means a weaker economy, which means increasing inequality, which means a weaker economy. That economic inequality feeds into political economy, so the ability to stabilize the economy gets weaker.
While the conservative right will almost certainly try to denounce these findings as "bias from the liberal elitite," the truth of the matter is that the reports aren't being crafted by one party or one organization.The reports come from an array of diverse sources, including IMF, internationally renowned economists, the Organization for Economic Cooperation and Development, and dozens more.
The Oregon Center for Public Policy has provide extensive coverage of income inequality in Oregon. Like the rest of the nation, Oregon has seen tremendous growth for its top earners, while low-income and middle class families have seen their wages stagnate or even decline.
Head over to the New York Times for the full article.