Are wealth and prosperity synonymous?

by James Melik

BBC News
November 23, 2012

What is it besides the money in people's pockets that makes a society prosperous?

Many people argue there are ingredients other than hard cash to consider - such as personal freedom and good governance.

The International Energy Agency recently predicted the US could become self-sufficient in energy within a couple of decades - a move that should make any nation more prosperous.

Will Hutton, who chairs the economic research think tank Big Innovation Centre, and is principal of Hertford College in Oxford, says: "A secure energy supply will lead to lower energy prices, which could lead to a more vigorous US manufacturing sector."

It might make the US more prosperous financially, but will it feel safer and more at peace with itself?

Not necessarily so, thinks Jeff Gedmin at London-based think tank the Legatum Institute, which says its aim is to advance ideas and policies in support of free and prosperous societies around the world.

"I don't think there is any kind of mechanical relationship between material wealth and the well-being of citizens," he says.

"Every year we publish the Prosperity Index, and we find this year, for the first time, the US drops out of the top 10."

"When you look at access to education, access to health care, or access to opportunity, there are problems," he says. "The feeling Americans have is that hard work, as it once was, does not get them ahead any more in the same way."

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