Critics of the wealth gap might argue that

Critics of the wealth gap might argue that:

A. Economic growth will likely decline over time.
B. The upper classes cannot help create new jobs.
C. The wealthy become unable to make investments.
D. Buying power exceeds the supply from producers.

Answer: A. Economic growth will likely decline over time.

Critics of income inequality believe that as the income disparity between the rich and poor increases, this will negatively affect, or lead to the decline of, overall economic growth over time. Specifically, critics are concerned that as wealth continues to be concentrated in the hands of a small elite, the vast majority of individuals will have lower income levels to spend on goods and services in the economy. This diminished consumption will lead to a decline in the overall demand for goods and services in the economy. Since consumer consumption is a leading driver of economic growth, the reduction in consumption can lead to slower business growth, less job creation, and weaker national income.

This does not suggest that wealthy individuals cannot generate jobs or that they are incapable of making investments. The evidence suggests that even though high concentrations of wealth does result in some job growth, it will not offset the loss of consumption. Wealthy individual’s have a higher propensity to save from their incomes, and they may invest in a manner that does not stimulate broad-based economic activity. The option that states "buying power exceeds supply from producers" is not generally cited as a major problem with the wealth gap.