How does reallocating resources from consumer goods to capital goods impact long-term economic growth?

Reallocating resources from consumer goods to capital goods can significantly impact long-term economic growth. Consumer goods are items that people buy for immediate use, like food and clothing, while capital goods are tools and equipment used to produce other goods, like machinery and factories. When resources, such as money and labor, are directed towards capital goods, it helps increase production capacity and efficiency over time. For example, if a country invests more in building factories instead of producing more clothes, it can eventually produce more goods in the future, leading to greater economic output. This shift can create jobs and improve technology, resulting in a stronger economy in the long run.