The Classical growth model argues that markets are an impediment to growth because they lead to unequal distribution of income.

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The Classical growth model, primarily associated with economists like Adam Smith, David Ricardo, and Thomas Malthus, actually posits that markets facilitate growth by efficiently allocating resources. It does not argue that markets are an impediment to growth; rather, it suggests that market mechanisms, through competition and the division of labor, enhance productivity and economic expansion.

The Classical Growth Model Argues That Markets Are an Impediment