Thank you for the kind words! Good luck in your studies!

5:19 - He has not said that inequalities create economic development but when rich people invest in the country, such as building factors, the middles class can grow and that leads to development.

@@cesurbasoglu4144 The UNDP and economists in general attribute a high importance to inequality, but ? Simon Kuznets (Kuznets, 1955) brought up the idea of “optimal inequality”, which would be the level of inequality, which should be acceptable for attaining high economic growth. The shows that inequality increases in early stages of development and decreases in later development stages representing an inverted U-shaped curve (mainly because in early development stages investment opportunities bring high returns, while cheap rural labor influx still depresses the wages of the masses). But empirical data has shown that this Kuznets effect does not happen in most countries, and that there are different income equality and inequality levels for different countries during comparable development phases. For instance, South Korea and Japan developed very fast with a low and diminishing inequality, while e.g. China now develops with quite a high Gini coefficient. Highly developed countries like Sweden and Norway have relatively equal income distributions, while e.g. the USA has a high Gini coefficient. Economists furthermore do not agree on which level of inequality is acceptable, and even if (high) inequality is bad for economic growth at all. There are mainly three quite different visions:

he didnt say that inequality is good. he said that econ growth leads to inequality, but that there is a trickle down effect of wealth over time to a certain extent