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- Oct 10, 2009
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Yup! - It's a Proven Fact that Reaganomics lowered GDP growth. Clinton & Obamanomics has reversed that! Reagan, Bush 1 & 2 had multiple negative GDP recessions on their watch. Clinton & Obama had no Recessions on their watch.Adding another nail to the coffin of Reaganomics, a recent study published by the International Monetary Fund (IMF) has concluded that, contrary to the principles of “trickle-down” economics, an increase in the income share of the wealthiest people actually leads to a decrease in GDP growth.
“The benefits do not trickle down,”
But the IMF study’s five authors say we should instead focus on raising the income of the poor and the middle class. “Widening income inequality is the defining challenge of our time,” they write. “In advanced economies, the gap between the rich and poor is at its highest level in decades.”
Raising up the poor appears to have a dramatic effect: A 1% increase in the income share of the bottom quintile results in a 0.38% increase in GDP. Meanwhile, a 1% increase in the income share of the top 20% results in a 0.08% decrease in GDP growth.
Trickle down economics is wrong, says IMF