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of GDP, relative to the baseline. "But economic instability and slower growth are not the only ill effects of inequality it also subverts economic Burberry Shoes New policy.

 back to the 1930s, and British economist John Maynard Keynes, Dr Bovino says rising inequality can destabilise economies. Higher income households don't spend all of their income, while lower income households try to maintain their consumption by borrowing. "When these imbalances can no longer be sustained, we see a boom/bust cycle such as the one that culminated in the Great Recession (2008 and 2009)," she said. "This diminishes future income prospects and potential long term growth, becoming entrenched as political repercussions extend the problems. "A number of factors are responsible for the concentration of a large proportion of income in a small number of hands, including the rise of "super managers", as French economist Thomas Picketty calls the well paid high fliers. "The minimum wage, which has held at $US7.

"The affluent may exercise disproportionate influence on the political process, or the needs of the less affluent may grow so severe as to make additional cuts to fiscal stabilisers that operate automatically in a .

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25 an hour since July 2009, has suffered a decline in purchasing power for almost half a century peaking in 1968, when it was at $US1. 60, or just shy of $US11 in today's money," Dr Bovino said. There are other factors larger inheritances and more income from capital gains, and, in turn, more Caterpillar Boots Outfit

5 per cent, from expectations of 2. 8 per cent five years ago. "Over the next five years, if the American workforce completed just one more year of school, the resulting productivity gains could add about $US525 billion, or 2. 4 per cent, to the level Clarks Shoes Hot Sale

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1979," Dr Bovino said. She estimates income inequality has dragged the 10 year US economic growth forecast to a 2.

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earnings from that increased wealth. "That said, at the federal level, the equalising effect of transfers and taxes on household income was smaller in 2007 than it had been in Dior Boots Mens

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