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But isnt it that Higher Growth will only improve real income when it is above the inflation rate?Originally posted by SPX
Higher growth may not benefit all but overall real income will rise. I think productivity leads to eco growth not the other way, this is as we become more competitive, this creates greater demand making more jobs etc and then people will be getting more money by making use of economies of scale. Thus, on average the incomes will rise as we get more money and it is thus distributed for all to have more real income.