'Income inequality has significant impact on economic growth'
December 9 , 2014
Research by the Organization for Economic Cooperation and Development has shown that inequality in income has an impact on economic growth that is "statistically significant”.
According to the think tank, rising inequality in Britain was responsible for nearly nine percentage points of reduction in GDP growth from 1990 to 2010. Similarly, the United States lost nearly seven points, the OECD report said.
Also, redistributing wealth through benefits and taxes does not hinder economic growth, it said.