When you get a "lift" on your SUV/Jeep/truck, how does that help in off-roading?

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When you get a "lift" on your SUV/Jeep/truck, how does that help in off-roading?

Don't the axles stay in their original positions and, therefore, you never really gained any ground clearance? Or is the purpose of the lift so that you can put much larger tires on and then get the axles higher? Just wondering...
 
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