Good news for the 99% that doesn't fall under the richest 1% of America.  Even the International Monetary Fund is dismissing "trickle-down" economics.  A new study released by the IMF claims that reducing the gap between the rich and the poor helps the economy grow.  

According to the Guardian, the first news outlet to report on the study, the idea that "increased income inequality makes economies more dynamic has been rejected by an International Monetary Fund study, which shows the widening income gap between rich and poor is bad for growth."  

So the next time someone tells you income inequality is better for America's economic prosperity, now you can just tell them that it's proven not to by the world's leading organization on our global economy.  

The IMF's report is by five economists, who all dismissed "trickle-down" economics, and stated: 

"If the income share of the top 20 per cent increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down" 

The study clarifies:

"In contrast, an increase in the income share of the bottom 20 per cent is associated with higher GDP growth."  

Essentially, these economists are saying we need to raise the income share of the poor and keep our middle class thriving to ensure economic growth.  The research involved studying various economies, from less developed countries to emerging economies around the world.  

Agree or disagree with the study's findings?  Sound off below.

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