What Makes Prosperity?

Forgive me for waxing philosophical, but I just watched Slumdog Millionaire, so I’m allowed.

I see places like the garbage heaps of India, and I have to ask, what defines real wealth? Is it money? Is it stuff?

Ages ago, I read about a successful small business in a troubled part of Africa, where the owner couldn’t come close to meeting demand for his products. A reporter asked him why he didn’t expand. The owner explained that as soon as he got bigger than others, what he had would be taken away from him.

I also think about places in the Middle East that are brimming over with oil money, but so restrictive in their laws towards women and non-Muslims, and even Muslim men, that “prosperity” is almost a meaningless concept.

Finally, I think of Socialist countries where no one is exactly allowed to be “poor,” but they’re not allowed to be rich, either, so work incentive is basically nil.

I took away from that and other reading that without a fundamental set of laws that allow hard work and risk to pay off, there cannot be true prosperity. So, what are the fundamentals of the Rule of Law?

  • Laws that are fair.

  • Laws that apply to everyone equally.

  • Laws that are enforced.

Many people see wealth inequality as the biggest evil in society, but I don’t agree. With the Rule of Law, even the poorest can entertain the expectation of greater prosperity through hard work and a little luck. Without this modicom of security, people may hoard, but they certainly can’t prosper.