[WILL MARK BRAINLIEST] Explain why growth in an economy does not immediately lead to wealth equality.

Please mark brainliest

Economic growth more likely when wealth distributed to poor instead of rich

Explanation:

Having money from economic growth flow to poor people rather than the rich feeds into a lift in the rate of economic growth and lower unemployment. Conversely, as income inequality increases, the potential for economic growth is constrained.

The economic case for maintaining a progressive income tax structure and targeting welfare payments to those most in need is overwhelming.

The issue can be illustrated through a simple stylised example which outlines how a higher cash flow to the poorest is growth enhancing while a higher cash flow to the rich boosts savings, but keeps economic growth lower.

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