Kuznet's Curve

Holla

Kuznet's curve was mentioned in my prosperity 2050 article. I thought it was quite interesting.

This study, that received a noble prize, states that economic inequality would lead to the prosperity of the country. When a country has not fully matured, it usually focuses on physical capital, buildings, for urbanization. This process favors people who already have money, so these people would be able to invest and reap the benefits. At the same time, these changes would increase the country's GDP, therefore, it would eventually lead to an overall increase in wealth for all citizens.

This model is for country that had not been industrialized, and it seems logical. Yet this noble prize winning equation did not hold true in the US. There are too many other factors that comes into play. Prosperity 2050 said athe country would be able to perform better if it takes advantage of all human capital. Yeah, this makes more sense.