How Income Inequality Puts State Budgets in a Bind

A report from Standard & Poor’s Rating Services last month argued that income inequality is harming growth in the U.S. Now S&P is back with related analysis on how inequality harms state budgets in a way that goes beyond their control. ”This is not going away,” says Gabriel Petek, the lead analyst on the new report. “We hope that investors and everyone else that sees this recognize that all we are trying to do is understand the factors that effect credit quality—we don’t have any particular agenda.”

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