Turns out that excess income inequality can hamper growth. That, at least, is the claim of a recent book from the Brookings Institute. Here is an Opinion piece by one of the authors in Reuters. Income Inequality.
This is a topic that deserves much more discussion, and I’ll get to it soon, I promise.
I think the idea is that when fewer consumers have fewer dollars, because more is accumulated at the top, there is lower economic demand. That seems obvious, but will require more analysis.
