Having started the research with a basic belief in Okun's original "trade-off," what they found surprised them: "Redistribution appears generally benign in terms of its impact on growth." Redistribution, as Okun posited, may be a direct drag on the economy. But the reduction in inequality provided a boost that was as large or larger. On average, across a group of countries that included the U.S. and industrialized western nations as well as developing markets, "the combined...effects of redistribution -- including the growth effects of the resulting lower inequality -- are on average pro-growth."
14 March 2014
Communists have seized the IMF!