An Essay on the Effects of Income Inequality on Economic Growth An Essay on the Effects of Income Inequality on Economic Growth

Income inequality has been a hot topic in economic circles for many years. Some authors have viewed the issue from how income inequality affects the economy, while others have looked at how the economy might influence unequal distribution of resources, such as income. Income inequality has also been shown to have unequal benefits in different stages of development. Income inequality influences politics in a big way as well. The term "income gap" that many are familiar with has much to do with a country's economic growth, with some of the determinants being poverty, the accumulation of human capital, redistribution, social conflict, economic mobility and trade liberalization. This short paper will look at income inequality in all these areas and suggest future research on the relationship of income distribution and economic growth.