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OECD: Income inequality slows growth significantly

Focus on welfare of bottom 40% of society, not just poverty of lowest 10%

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Inequality knocked about 6-7 percentage points off US gross domestic product growth between 1990 and 2010, while the UK, Italy and Mexico were among countries that also experienced a drag, says the OECD.

London

WIDENING inequality creates a drag on economic growth that can be counteracted by tax policies to benefit the less well-off, according to the Organisation for Economic Co-operation and Development (OECD).

In an analysis published on Tuesday, the Paris-based group said it...

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