Bigs Quote by Paul Samuelson
“The growth of a nation's productive potential is the central factor in determining its growth in real wages and living standards… high rates of investment and saving usually have a big payoff in promoting economic growth.”
About This Quote
Source Book: Economics, Paul Samuelson, 1948
Economic growth depends mainly on a nation's ability to increase productivity, which is driven by investment and saving.
In simple terms: Productivity drives wages and living standards.
Boost investment and saving to raise productivity.
Themes
Mood
Type
When to use this quote
- national policy planning
- business strategy
- personal finance
- development aid
Key Concepts
Questions to Reflect On
- How can policy ensure savings become productive investment?
- What role do institutions play in converting savings to growth?
High savings may not translate into growth without good institutions.