economic growth ↔ economic inequality

Relations (1)

related 2.81 — strongly supporting 6 facts

Economic inequality is linked to economic growth as it is frequently cited as a factor that hampers or slows national development [1], [2], and [3]. Specifically, experts like Alan B. Krueger argue that high inequality negatively impacts growth by reducing consumer spending, lowering worker productivity, and shrinking the middle class [4], [5], and [6].

Facts (6)

Sources

5.16: The Role of Tax Policy - Social Sci LibreTexts socialsci.libretexts.org LibreTexts 3 facts

claimAlan B. Krueger posits that high economic inequality may slow economic growth because workers' morale is likely to be lower in a society with higher economic inequality, which decreases their productivity.

claimAlan B. Krueger posits that high economic inequality may slow economic growth because the wealthy tend to save their money rather than spend it.

claimAlan B. Krueger posits that high economic inequality may slow economic growth because a shrinking middle class results in less spending to stimulate the economy.

Forms of Government: Change - What Is Economic Inequality? education.cfr.org Council on Foreign Relations 2 facts

claimEconomic inequality can slow national economic growth by resulting in lost potential.

claimThe United Nations has prioritized reducing economic inequality because it can fuel democratic backsliding, influence migration, hamper economic growth, and exacerbate health crises.

Revision Notes - The role of government in reducing inequality | IB DP sparkl.me Sparkl 1 fact

claimHigh levels of economic inequality can lead to social unrest, reduced economic mobility, and hindered economic growth.