Green party leader is ranting in parliament drawing on this dodgy OECD research so this rebuttal deserves a reblog
Figure 1: Estimated consequences of changes in inequality (1985 – 2005) on subsequent cumulative growth (1990-2010)
Drawing on harmonised data covering the OECD countries over the past 30 years, the econometric analysis suggests that income inequality has a negative and statistically significant impact on subsequent growth.
In particular, what matters most is the gap between low income households and the rest of the population.
In contrast, no evidence is found that those with high incomes pulling away from the rest of the population harms growth.
The paper also evaluates the “human capital accumulation theory” finding evidence for human capital as a channel through which inequality may affect growth.
Analysis based on micro data from the Adult Skills Survey (PIAAC) shows that increased income disparities depress skills development among individuals with poorer parental education background, both in terms of the quantity of education attained (e.g. years of schooling), and in terms…
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Utopia, you are standing in it! 
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