Income Inequality Significantly Damages Growth, OECD Says

Widening inequality creates a drag on economic growth that can be counteracted by tax policies to benefit the less well-off, according to the Organisation for Economic Cooperation and Development.

In an analysis published today, the Paris-based group said it undermines growth by preventing disadvantaged people from accessing education to develop their skills, impeding social mobility. To offset the damage, policy makers need to be concerned with the general welfare of the bottom 40 percent of society and not just the poverty of the lowest 10 percent.