Published on Duncan Green’s From Poverty to Power blog

In a new report, the IMF effectively drives the final nail into the coffin of trickle-down economics. The top finding, in their words, is that “if the income share of the top 20 percent (the rich) increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down.”

In contrast, an income bump to the poorest 20 percent is associated with higher GDP growth. The report concludes, “The poor and the middle class matter the most for growth.” Continue reading →