POVERTY is good for the economy.
Poverty is good for the ecocomy because it is used by so many industries to make money. Politicians use it as a successful platform. Engineered poor neighborhoods supply the crime needed to support many government organizations and industries. Non-profit organizations and religions use poverty to generate lots of money from the poor.
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The economy as a whole might improve if wealth were to be more fairly distributed, but our status among nations would suffer. And that is what is really important. In the words of Charlie Sheen...WINNING!