IMF Study Supports Paying ‘Poor Class’ To Increase Economic Growth

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Recently the IMF (International Monetary Fund) conducted a study that shows “trickle-down” economics isn’t key to growing economic growth in the U.S. Instead, the five economist who participated in this study determined that more attention should be focused  on the bottom 20%, deemed as the “poor class”.

Excerpt from The Guardian:

“If the income share of the top 20% increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down. In contrast, an increase in the income share of the bottom 20% is associated with higher GDP growth,”

What do you think about the study conducted by IMF? As I read through various comments on the web about this particular study, many people felt that “saving the bottom 20%” could not be achieved because of various current problems: bad spending habits, limited resources, and lack of discipline. Rightfully so,  I believe supporting the bottom 20% is something that is easier said than done. Whether this task is impossible or not, educating the community on economic principles and understanding should be the first action to building economic growth from the bottom up, instead of “trickle-down”.

 

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