The Rational Optimist: How Prosperity Evolves (P.S.)

This is what prosperity is: the increase in the amount of goods or services you can earn with the same amount of work.

By exchanging, human beings discovered ‘the division of labour’, the specialisation of efforts and talents for mutual gain. It would at first have seemed an insignificant thing, missed by passing primatologists had they driven their time machines to the moment when it was just starting.

Chimpanzees may teach each other how to spear bushbabies with sharpened sticks, and killer whales may teach each other how to snatch sea lions off beaches, but only human beings have the cumulative culture that goes into the design of a loaf of bread or a concerto.

the capacity of a tiny pocket calculator in 2000 would have cost you a lifetime’s wages in 1975.

Since 1800, the population of the world has multiplied six times, yet average life expectancy has more than doubled and real income has risen more than nine times. Taking a shorter perspective, in 2005, compared with 1955, the average human being on Planet Earth earned nearly three times as much money (corrected for inflation), ate one-third more c... See more

I am a rational optimist: rational, because I have arrived at optimism not through temperament or instinct, but by looking at the evidence.

If economic growth does not produce happiness, said the new wisdom, then there was no point in striving for prosperity and the world economy should be brought to a soft landing at a reasonable level of income. Or, as one economist put it: ‘The hippies were right all along’.

There are people today who think life was better in the past. They argue that there was not only a simplicity, tranquillity, sociability and spirituality about life in the distant past that has been lost, but a virtue too. This rose-tinted nostalgia, please note, is generally confined to the wealthy.