Inequality stifles growth in democracies, study finds.
Inequality can harm economic growth. When there is a lot of conflict over how wealth is shared, governments may make policies that tax investments and activities that help the economy grow. A study found that in countries where people have a say in how things are run (democracies), there is a strong link between inequality and slower economic growth. This means that when there is a big gap between rich and poor, the economy doesn't grow as well.