IMF Doesn’t Appreciate a Rising Tide February 13, 2017Posted by geoff in News.
It’s interesting that two people can look at the same data and derive completely different conclusions. Take, for example, today’s chart from the International Monetary Fund:
The IMF says that the message is that “Growth does not help at all,” but from what I see, economic growth lifted 20% of the population out of poverty, without making inequality worse. The rising tide lifted all the boats. And it’s interesting that the stronger the growth, the faster the decline in poverty.
Of course these people are not doing well (the World Bank definition of “extreme poverty” is $1.90/day, which is a ridiculously terrible standard of living). But it’s clear that their lot is improving via economic growth.
The IMF claims that inequality is important enough that governments should redistribute wealth to make things more fair. I say that that’s a nice college dope session type of fantasy, which neglects all the collateral damage that redistribution does.
Like dampening economic growth.