Inequality & Growth

This useful review of recent literature finds that conflicting empirical results on the impact of inequality on growth may be due to timing. In the long run inequality appears damaging but, in the short run, it could provide a fillip to activity. Inequality is particularly bad news for those who are not at the top of the distribution pile…
How Are Economic Inequality and Growth Connected? Washington Center for Equitable Growth, Oct 2014
Also see this related post