Income distribution impacts overall economic health from "summary" of Theory of Economic Growth by W. Arthur Lewis
The distribution of income in a society plays a crucial role in shaping its economic health. When income is concentrated in the hands of a few individuals or groups, it can lead to a host of negative consequences that can hinder overall economic development. Unequal income distribution can create social tensions and unrest, leading to political instability and economic uncertainty. This can discourage investment and hinder economic growth, as investors may be wary of putting their capital into an unstable environment. Moreover, unequal income distribution can also limit the purchasing power of the majority of the population. When a large portion of the population is unable to afford basic goods and services, it can lead to a decrease in demand for goods and services, which can in turn slow down economic growth. In contrast, a more equitable distribution of income can help to boost consumer spending, dr...
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