
Ask HN: Will the US suffer any consequences for its high Gini coefficient? - newyearnewyou
The US has the 4th highest Gini coefficient of OECD countries [1] although it&#x27;s remained fairly stable since 1992, it does demonstrate a slight uptrend [2]. How might this affect life for most Americans, particularly the middle class?<p>[1] http:&#x2F;&#x2F;www.oecd.org&#x2F;social&#x2F;income-distribution-database.htm
[2] https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;SIPOVGINIUSA
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nabla9
There is some evidence that income inequality raises the economic growth of
poor countries and decreases the growth of high- and middle-income countries.

See for example this OECD Economics Department Working Paper
[http://www.oecd.org/economy/growth-and-inequality-close-
rela...](http://www.oecd.org/economy/growth-and-inequality-close-
relationship.htm)

or this [https://voxeu.org/article/effects-income-inequality-
economic...](https://voxeu.org/article/effects-income-inequality-economic-
growth)

>Specifically, we find that, on average, a 1 percentage point increase in the
Gini coefficient reduces GDP per capita by around 1.1% over a five-year
period; the long-run (cumulative) effect is larger and amounts to about -4.5%.

