The widened gap between the wealthiest Americans and the rest of the nation portends slower economic and job growth, analysts say. "Growth becomes more fragile" in countries with high levels of inequality such as the United States, Jonathan D. Ostry of the International Monetary Fund told The New York Times. Ostry's research suggests the widening income disparity since the 1980s might limit the nation's economic expansion by as much as a third, the Times reported Tuesday. Concentrating income in fewer hands could translate into less stable economic expansions and anemic growth, Ostry and fellow IMF economist Andrew G. Berg contend. The newspaper said the top 1 percent of U.S. households earn about one-sixth of all income, and the top 10 percent take in about half. That's the largest gap since the Great Depression. The first full year of the recovery also was kind to the wealthiest Americans, with the top 1 percent raking in 93 percent of income gains, the Times said. IMF economists see this as a serious problem. "Some dismiss inequality and focus instead on overall growth -- arguing, in effect, that a rising tide lifts all boats," a commentary by IMF economists said. "When a handful of yachts become ocean liners while the rest remain lowly canoes, something is seriously amiss." The Organization for Economic Cooperation and Development this year warned the income gap could bring "negative consequences" and suggested changes to tax and spending programs to address it in a meaningful way. "What worries me is the idea that we're in a vicious cycle," said Joseph E. Stiglitz, a Nobel laureate in economics. "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."
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor