The U-Turn - Inequality

Economic Principals » Blog Archive » The U-Turn: "[Saez's] most striking finding has been to confirm the widespread intuition that income inequality has been increasing – that one of the key regularities of post-World War II economics had fallen apart. It was in 1955 that Simon Kuznets, then of the Johns Hopkins University, observed that inequality in developing countries tended to describe an “inverted-U,” rising substantially for a time as workers moved from farms into industrial cites, then steadily diminishing as output grew and gains from increased productivity were more evenly distributed."