Synchronization of Economic Growth and Income Distribution

The article reviews various theories about the possibility or impossibility of the simultaneously of implementing policies of economic growth and income distribution with emphasis on Iran's economy. Priorities in economic growth and income distribution are different opinions. Some groups conceive that there exist incompatibility and conflict between economic growth and equitable distribution of income, and unfair income distribution in the early stages of economic growth of any country is considered necessary, believing that income distribution has precedence over economic growth. In contrast, others believe that increasing inequality is an obstacle to the economic growth, and economic growth is prior to income distribution. There are still other groups who say economic growth and income distribution have no priority over one another. This paper reviews theoretically the analysis of the three groups, as mentioned, and considers Iran's experience in this regard, concluding that in Iran income inequality has had no effect on the increase of economic growth rate, and economic development objectives and equitable distribution of income have been consistent and compatible. So it is possible to simultaneously achieve them.