Growth is good for the poor

According to a study prepared for the World Bank by David Dollar and Aart Kraay, economic growth as a result of globalization improves the economic plight of the poor in the same proportion as the rich. Tough times resulting from an open economy also hurt the poor in the same proportion as the rich. Certainly a 10% loss hurts a poor person more than a 10% loss to a rich person, but the loss is, nonetheless, proportional.

In the same paper, the study found that cutting inflation and cutting public spending actually improves the distribution of income. The poor benefit twice as much as the rich.

Click here for the paper.

One of the factors most closely corallated to wealth disparity? Education. Surprise!