'Inequality Happens?' Hopefully Not
By Keli Tianga
In a recent Rooflines post, Sarah Treuhaft holds up new, reputable data that finds that inequality is not a circumstance of economic success, after all, but that it actually has a dampening effect. Specifically, the widening gap between the poor and lower middle class (households in the bottom 40 percent of the income distribution) and everyone else had the biggest negative impact on growth. Treuhaft’s takeaway is that increased inclusion and equity will lead to sustained growth of economies, so practitioners in community development and related sectors should stop working under the shadow of old research and actively work to help shift the paradigm.
Making a similar but somehow altogether different argument is...