New York Times released an article covering a report from Standard & Poor, an economic advising firm for Wall Street investors and their likes. The content declared that inequality actually hurts economic growth, bad news for the rich investors who rely on S&P’s information to make informed decisions in their practice. It’s stated that those with larger amounts of wealth tend to save more of it, pulling money out of the economy. Middle class families tend to spend a much larger percentage of their income, in part because of the necessity to maintain a constant standard of living. The rich, while living much better off, do not proportionally spend as much money as they earn.
Perhaps to avoid conflict with its clients, the firm stayed away from promoting controversial policies and focused on the importance of pouring more money into education as a means of increasing GDP up to 2.4%.