David F. Ruccio — Death of trickle-down economics?

While the policy side of the IMF continues (with the other members of the troika) to push for austerity measures in Greece, its research side (against the grain of much of contemporary mainstream economics) is sounding the death knell of trickle-down economics. 

I am referring to the recent report, Causes and Consequences of Income Inequality: A Global Perspective, prepared by Era Dabla-Norris, Kalpana Kochhar, Nujin Suphaphiphat, Frantisek Ricka, and Evridiki Tsounta [pdf]. Their main finding (based on an analysis of data for 159 advanced and emerging markets and developing economies) is that there’s an inverse relationship between the income share accruing to the rich (top 20 percent) and economic growth....

Trouble is that the IMF leadership doesn't seem to read then papers its staff produces.

Occasional Links & Commentary
Death of trickle-down economics?
David F. Ruccio | Professor of Economics University of Notre Dame Notre Dame

Emily Cohn — A Simple Solution To America's Woes: Huge Raises

Many of the country's most taxing economic problems -- including poverty, rising inequality, falling mobility, and the decline of middle-class living standards -- can be tackled simply by paying people more, according to the paper. If the U.S. doesn't raise hourly wages for a broad swath of Americans, then those issues will get a lot harder to fix, they wrote. 

The trouble is that such a dramatic change will likely need the help of Congress, where wage-hike bills typically go to die.

The Huffington Post
A Simple Solution To America's Woes: Huge Raises
Emily Cohn

Planet Money — How The Poor, The Middle Class And The Rich Spend Their Money

Read it at NPR | Planet Money
How The Poor, The Middle Class And The Rich Spend Their Money
Jacob Goldstein and Lam Vo