Villanova University Jan Svejnar Columbia University and Inequality

: Other economists argue that inequality is a drag on growth, according to The Independent. They say it prevents the poor from acquiring the collateral necessary to take out loans to start businesses, or get the education and training necessary for a dynamic economy. Some argue that inequality can propel growth: They say that since the rich are able to save the most, they can actually afford to finance more business activity, or that the kinds of taxes and redistributive programs that are typically used to spread out wealth are inefficient. Others say inequality leads to political instability that can be economically damaging. Using an inventive new way to measure billionaire wealth, Sutirtha Bagchi of Villanova University and Jan Svejnar of Columbia University find that it not the level of inequality that matters for growth so much as the reason that inequality happened in the first place. A new study that has been accepted by the Journal of Comparative Economics helps resolve this debate. (news.financializer.com). As reported in the news.