"Research" on Middle-Out

I confess I have no idea what the Middle-Out Theory. I'll probably add a post soon on that.  But this summary of "research" showing that it works is awful. Let's take them one by one.

First, the author cites correlation, but unfortunately for him correlation does not imply causation. Economic growth could cause income equality or something else could cause both.

Second, he cites the large percentage of entrepreneurs that come from the middle class. Well, they might come from the middle class, but I bet the money that funds them comes from the wealthy.

Third, he says that the poorer you are, the more likely you are to spend money and spending money helps the economy. I believe even Krugman only believes this is true when resources are unused (a recession) not necessarily when times are good. So this may be evidence.

Finally, he says that because middle class people try to keep up with wealthy people and spend themselves into debt, then it's better if wealthy people just didn't have the money. This sort of logic is twisted. Just because some people can't control themselves doesn't mean you should punish others.