Does income inequality cause decreased economic growth?
JULY 13, 2015
' One of Reich's basic premises in Inequality for All is that income inequality causes decreased economic growth. then we should see a negative correlation between measures of income inequality and income growth. That is, as income becomes less equal, income growth should slow down. So I decided to look at the correlation between the Gini coefficient in year X and GDP growth in years X+1, X+2, X+3,,X+10.