Second, although redistributive policies have the potential to benefit the poor both directly and indirectly, they will do so only if redistribution does not jeopardize investment. The phenomenon in the past that redistributive policies such as land reform have often failed to help the poor proved it.
Conclusion
There is growing recognition that an excessively unequal income distribution may be detrimental to sustainable growth. Some policies aimed at reducing excessive income inequality, at the same time, increasing the economy growth have been proved effective in some countries. Thus, in a society with macroeconomic stability and allocative efficiency, income distribution needn't to get worse before it begins to improve as the economic growth. The rising part of the inverted U can be avoided by suitable policies.
…
