prosperity

Economists have been fascinated by the question of the origins of prosperity since the very beginning of their discipline. Today, we know much more about it than Adam Smith did 250 years ago when he wrote The Wealth of Nations. In the mid-20th century, economist Robert Solow developed a model explaining economic growth through capital accumulation and population growth.

The main mechanism that relates human freedom to economic growth is channeled through institutional and economic factors, such as government effectiveness, investments, and trade. Therefore, institutions are an important determinant of economic prosperity in countries worldwide.

Most readers will probably no longer wish to live in the Middle Ages, following these few examples. Too strange and different, the worldview of that age seems to be compared to that of today. And we also know the consequences of the tight regulation of all possible aspects of life in these times.

People are either cannibals or creators. The fundamental difference between the two is how in their opinion the world works. What to do when you\'re hungry – eat a neighbour or come up with a solution to growing vegetables in the middle of winter? Is the world a “zero-sum game” in which one can prosper only if others suffer? Yes would be the answer of a cannibal.