Kaldor's Laws

Kaldor's Laws are observations about economic growth and income distribution. The first law states that economies with higher average income tend to grow faster, as they have better infrastructure and productivity. The second law suggests that as economies grow, income inequality often increases because benefits from growth are initially unevenly shared, with benefits accumulating more for higher-income groups. These ideas highlight the relationship between economic development and income distribution, emphasizing that growth can influence and be influenced by inequality in a country's economy.