Growth does not guarantee equality from "summary" of The Haves and the Have-Nots by Branko Milanovic
The idea that economic growth automatically leads to greater equality among individuals is one of the most enduring myths in the field of economics. While it is true that during periods of rapid economic expansion, there tends to be an overall improvement in living standards, the distribution of these gains is often highly unequal. In fact, history has shown time and time again that economic growth can actually exacerbate existing inequalities rather than reduce them. One of the main reasons for this is that the benefits of economic growth are not evenly distributed among all members of society. Those who are already wealthy or well-connected tend to be the first to reap the rewards of increased prosperity, while those at the bottom of the income ladder often see little to no improvement in their own circumstances. This leads to a widening gap between the haves and the have-nots, as the rich get richer while the poor remain mired in poverty. Another factor that contributes to the lack of equality in times of economic growth is the nature of the growth itself. In many cases, the expansion of the economy is driven by industries that cater to the needs and desires of the wealthy, such as luxu...
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