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Economic growth is not a sufficient condition for improving mass living standards for several reasons.- First: governments work to promote economic growth not only to improve the welfare of their citizens, but sometimes to increase the strength and glory of the state and its rulers.If economic growth does not guarantee improvement in living standards, per capita GDP may not be a meaningful measure of economic development.- Second: resources may be heavily invested in more growth, with large consumption gains deferred to a later date.


Original text

Economic growth is not a sufficient condition for improving mass living standards for several reasons.
- First: governments work to promote economic growth not only to improve the welfare of their citizens, but sometimes to increase the strength and glory of the state and its rulers. Governments in developing countries may use national income to expand their armies or build complex capital complexes in deserts and forests. They often give little benefit to country citizens.
- Second: resources may be heavily invested in more growth, with large consumption gains deferred to a later date.
- Third: income and consumption may increase, but those who are already in relatively good shape may get all or most of the benefits. The rich take wealth and the poor take poverty.
If economic growth does not guarantee improvement in living standards, per capita GDP may not be a meaningful measure of economic development.

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