THE IMPACT OF INCOME INEQUALITY ON ECONOMIC GROWTH

Abstract: The current article examines the relationship between income inequality and economic growth using the Gini coefficient to measure income inequality and the GDP per capita to measure economic growth. The study shows a complex relationship between income inequality and economic growth, and the impact can vary depending on the specific context of a country. However, the results suggest that high levels of income inequality can have a negative impact on economic growth, as it limits access to education, healthcare, and other social services for low-income individuals, which can impede their ability to be productive members of the workforce. Additionally, when a large portion of wealth is concentrated in the hands of a small group of people, it can lead to reduced consumer spending, which can slow economic growth