August 06, 2014

Who'd a thunk it?

This is a bit of a surprise. The New York Times recently reported that the business group Standard & Poor's recently released a report arguing that inequality in the US is threatening economic growth.

According to the Times,

The fact that S.&P., an apolitical organization that aims to produce reliable research for bond investors and others, is raising alarms about the risks that emerge from income inequality is a small but important sign of how a debate that has been largely confined to the academic world and left-of-center political sources is becoming more mainstream.

The full report is here. I like the last lines:

The challenge now is to find a path toward more sustainable growth, an essential part of which, in our view, is pulling more Americans out of poverty and bolstering the purchasing power of the middle class. A rising tide lifts all boats...but a lifeboat carrying a few, surrounded by many treading water, risks capsizing.

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