Will higher GDP means concentration of wealth in few hands? If so why?
2)However, in an ideal situation, countries put in place right kind of policy frameworks, to make sure that higher GDP growth does not defeat the very purpose of equitable growth, even distribution of income across all sections of the society. Drivers of GDP growth like corporate are made to share their profit among the shareholders / investors, provide customer care / service and pay statutory duties like tax etc on time, follow fair and transparent business policies. This is to ensure that they do not get rich at the expense of the larger society and the State. If there is any breach, it inevitably leads to the concentration of wealth both good and bad in a few hands which would ultimately lead to social evils. We have seen that happ ...more
"The implication is that nations with diverse economies should tend to outcompete on the world stage those with large concentrations of wealth, such as monarchies, or established democracies that have allowed their wealth to concentrate," said author Clarence Lehman, associate dean for research in the College of Biological Sciences.
But while the rate of wealth concentration was increased by high variation among individual investors' returns, it bore no relation to the average economic growth.
"This leads to the surprising finding that wealth will concentrate due to chance alone in growing, stagnant or shrinking economies," said author Steve Polasky, professor of applied economics in the College of Food, Agricultural and Natural Resource Sciences. ...more