Income inequality is on the rise. Many economists take it as given that inequality does economic harm. But for something that has become conventional wisdom, there is surprisingly little evidence to make a definitive case that income inequality is bad for the economy.
First, the facts: Income inequality has worsened significantly in both the US and UK since the 1980s. In macroeconomic terms, this was hardly a period of great stagnation. But could it have been even better if incomes were distributed more equally?
Read more at: Does income inequality hurt economic growth? — Quartz