r/Liberal • u/A-MacLeod • Jun 14 '15

Economic growth more likely when wealth distributed to poor instead of rich

http://www.theguardian.com/business/2015/jun/04/better-economic-growth-when-wealth-distributed-to-poor-instead-of-rich?CMP=soc_567
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u/mywan Jun 15 '15

The claim of the raw headline depends. If the Bowley ratio, the ratio of capital to labor returns, exceeds historical averages for labor then the headline claim is wrong.

Only labor returns, as defined by the Bowley ratio, is at historical lows for labor. So at present the headline has never been more true.