Economic growth is defined as the growth of production volume, mostly measured as an increase of the gross domestic product. Economic growth means the increase of real income for firms and individuals. This growth springs from a cycle: Good investment breeds economic growth.  Economic growth breeds jobs.  Jobs breed a sound economy.  A sound economy breeds investment. This economic growth affects everyone, thus reducing poverty. Taxation, welfare, and other forms of government intervention distort the cycle and prevent its effects from propagating as they should. A free market promotes economic growth.