Saturday 2 January 2016

Crony capitalism is what shackles a nation’s growth | GulfNews.com

Crony capitalism is what shackles a nation’s growth | GulfNews.com:

"Economic inequality has skyrocketed in the US during the past few decades. That has prompted many calls for government policies to reverse that trend.

Defenders of the status quo argue that rising inequality is a necessary by-product of economic growth: If we don’t allow people the chance to become extremely rich, they will stop working, investing, saving and starting businesses. A receding tide will then cause all boats to sink.

Critics have responded with the claim that inequality doesn’t help growth but instead hurts it. This view was given ammunition by a number of recent studies, which have found a negative relationship between how much income inequality a country has and how fast it grows. One example is an International Monetary Fund study from 2015:"



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