A rising tide lifts all boats

Imagine you are playing with your toy boat in a bathtub. When you turn the faucet on, the water level rises and your toy boat starts to float higher. Now, if you have other toy boats in the bathtub, they too will also start to float higher when the water level rises. This is like a rising tide, which lifts all the boats in the water.

Similarly, in the real world, when the economy is doing well and growing, it benefits everyone. When the economy grows, people earn more money and have more jobs, businesses make more profit, and the government collects more taxes. This cycle of growth and prosperity benefits different sectors and groups of people, not just one particular segment. Therefore, we say that a rising tide lifts all boats, meaning that economic growth benefits everyone, not just a select few.