Wednesday, April 17, 2013

Growth is good

When the "pie" of wealth in a nation or community gets bigger, we know that the risk takers who organized production and trade around their idea (entrepreneurs) make money. But they are not the only ones who are benefited.

They sell a product that appeals to consumers, who think it worth the price, and purchase it in their own self interest.  This is basic free trade.

And if the business is successful, it also provides jobs for employees.  Going back to the WSJ book review of Why Growth Matters:  "Over the past two decades, India's economic reforms . . . have pulled nearly 200 million people out of poverty."

A whole nation profits when their economic pie grows:  entrepreneurs, employees, consumers.

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