Knowledge Tree
Relations (1)
related 2.00 — strongly supporting 3 facts
The relationship is established through academic research examining the link between the middle-income trap and economic growth [1], as well as claims that a shrinking middle class hinders economic growth by reducing consumer spending [2]. Furthermore, it is argued that a growing middle class and equitable income distribution are essential drivers for hastening economic growth [3].
Facts (3)
Sources
5.16: The Role of Tax Policy - Social Sci LibreTexts socialsci.libretexts.org 2 facts
quoteAlan B. Krueger, as chair of the Council of Economic Advisers, stated: “The evidence suggests that a growing middle class is good for the economy, and that a more fair distribution of income would hasten economic growth. Businesses would benefit from restoring more fairness to the economy by having more middle class customers, more stable markets, and improved employee morale and productivity.”
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.
Business ecosystems as a way to activate lock-in in business models link.springer.com 1 fact
referenceOzturk, A. (2016) published 'Examining the economic growth and the middle-income trap from the perspective of the middle class' in the International Business Review, 25(3), 726–738.