There was an optimum mix of those who gave great importance to quantitative measurements like Nobel laureate Simon Kuznets
, the father of national income accounting, and those who tempered the econometric approach with the findings of other social sciences like sociology, psychology, and, as in the case of Kuznets himself, history.
Or do the balancing forces of growth, competition and technological forces lead in later stages of development to reduced inequality and greater harmony among the classes as Simon Kuznets
thought in the 20th century?
However, as Simon Kuznets
, one of the founders of national income accounting, made clear, government output is not measured in the marketplace so its value is unknown.
The EKC hypothesis first developed in the early 1990s was based on the early work of Simon Kuznets
(1955), stating the existence of an inverted U-shaped relationship between the level of economic development as measured by gross domestic product (GDP) per capita and income inequality.
In 1955, the economist Simon Kuznets
hypothesised that income inequality would increase sharply and then decline -- in the pattern of an inverted "U" or a bell -- as countries underwent economic development.
, "Economic growth and income inequality." The American Economic Review 45, no.
, once said: 'Distinctions must be kept in mind between quantity and quality of growth, between its costs and return, and between the short and the long term.
As he tells it, GDP emerged from an Anglo-American joust between two economists -- Simon Kuznets
and John Maynard Keynes.
, the 1971 Nobel laureate in economics, hypothesized in the 1950s that income inequality tends to initially increase, peak, and then fall as economies develop.
Even Simon Kuznets
, the economist who practically invented GDP, had doubts about his creation.
Developed in 1934 by economist Simon Kuznets
to help the United States chart an escape from the Great Depression, GDP measures the total value of a country's goods and services over quarters and years.
Schultz, 1979; Milton Friedman, 1976; and Simon Kuznets