Change Quote by Larry M. Bartels
““Many ordinary Americans believe that “large differences in income are necessary for America’s prosperity,” as one standard survey question puts it.18 However, economists who have studied the relationship between inequality and economic growth have found little evidence that large disparities in income and wealth promote growth.19 There is not even much hard evidence in support of the commonsense notion that progressive tax rates retard growth by discouraging economic effort. Indeed, one liberal economist, Robert Frank, has written that “the lessons of experience are downright brutal” to the notion that higher taxes would stifle economic growth by causing wealthy people to work less or take fewer risks.””
About This Quote
Source Book: Equality and Efficiency: The Big Tradeoff, Robert M. Bartels, 2008
Economic research shows little link between high income inequality and growth, and progressive taxes do not clearly hinder effort or risk‑taking.
In simple terms: Inequality isn’t proven to boost growth; taxes don’t necessarily reduce work.
Key Takeaway
Question assumptions about inequality and tax policy.
Themes
economics
public policy
inequality
taxation
Mood
analytical
critical
Type
academic
policy‑analysis
When to use this quote
- policy debates
- tax reform discussions
- academic research
- public opinion surveys
Key Concepts
growth theory
behavioral incentives
progressive tax impact
Questions to Reflect On
- What data would change your view on inequality and growth?
- How might tax policy be designed to balance equity and incentives?
A Different Perspective
Evidence is mixed and context‑dependent; other factors may dominate growth outcomes.
