The Growth Model of economic development attempts to improve (increase) household income. This often takes the form of incentives for companies or factories (new and established) to relocate/expand, new housing projects, or the recruitment of new people with new skillsets to a region.

Public funding is often provided to attract or build growth initiatives. A common effect of these approaches is increased housing or transportation costs, which can increase household expenses.

Not everyone benefits from this type of development, because growth initiatives are typically focused on recruiting wealthier and more educated individuals from outside a place.

The Abundance Model of economic development attempts to expand household discretionary income by reducing household expenses. This often takes the form of programs that target the highest-cost expenses for the greatest number of people: housing, transportation, health care, child care, food, and care for older adults.

Public funding is often provided to programs, companies, and departments to build abundance initiatives. A common effect of these approaches is an expansion of discretionary income, which is often used for education, opening a business, or obtaining an asset (house, car).

Most people in a society benefit from this type of development, because abundance initiatives are an investment in the people that currently reside in a place.