Making the Rich Richer Is Not Good For Growth,
Says International Monetary Fund
By Oxfam
June 16, 2015 "Information
Clearing House" - "
IMF’s latest report on inequality, Nicolas
Mombrial, Head of Oxfam International’s office in Washington DC,
said:
“Fighting inequality is not just an issue of fairness but an
economic necessity. That’s not Oxfam speaking, but the International
Monetary Fund today. Their latest report, ‘Causes
and Consequences of Income Inequality’,
shows how it’s not just inequality that has a negative impact on
growth, but the currently limited distribution of income.
“The IMF proves that making the rich richer does not work for
growth, while focusing on the poor and the middle class does. This
reinforces Oxfam’s call on how we need to reduce the income gap
between the haves and have nots, and scrutinize why the richest 10%
and top 1% have so much wealth.
“By releasing this report, the IMF has shown that ‘trickle down’
economics is dead; you cannot rely on the spoils of the extremely
wealthy to benefit the rest of us. Governments must urgently refocus
their policies to close the gap between the richest and the rest if
economies and societies are to grow.
“The IMF has set off the alarm for governments to wake up and start
actively closing the inequality gap, not just between the rich and
poor, but for the middle class too. Their message to them is pretty
clear: if you want growth, you'd better invest in the poor, invest
in essential services and promote redistributive tax policies.
“Governments can do this in line with the IMF’s own report
recommendations, which Oxfam backs, namely a package of progressive
taxation measures, including clamping down on tax evasion and tax
avoidance, investment in essential public services, like health and
education, and labor market policies such as minimum wages. But the
IMF should also walk the talk and apply its own recommendations to
its future lending and advice.
In the same vein as Oxfam’s inequality campaign, the IMF does appear
to be telling governments that it is time to Even It Up.”
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