Kuznets Curve

today we’re looking at a concept that’s as provocative as it is controversial — a theory that asks: Does inequality get worse before it gets better?

It’s called the Kuznets Curve, and it’s been central to debates about growth, fairness, and whether rising prosperity naturally leads to a more equal society.

Let’s get smarter.

What Is the Kuznets Curve?

The Kuznets Curve is a graphical hypothesis that suggests there’s a predictable relationship between a country’s level of economic development and its level of income inequality.

The shape of the curve is an inverted U:

At the early stages of development, inequality rises.

At later stages, inequality falls.

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