Economic Growth and Social Inequality: Does the Trickle Down Effect Really Take Place?
Keywords:Economic Growth, Social Development, Poverty, and Inequality
AbstractThis paper is an attempt to show that economic growth and social development do not always go hand in hand. Economic growth may increase inequality as well as reduce social development. Unless government comes up with a strong political will to solve these anomalies, the invisible hand of the market can not take the benefits of economic growth to all the people. India was taken as a case study for this paper as in this new millennium, the spectacular economic growth of India is a center of discussion of academics in recent years and it is also an example of the rising up of a developing country in the world’s largest “democracy.”