Improving Our Standard of Living (Wattpad Edition)

Introduction

In the late 1700s, Adam Smith wrote a book about what made some nations more prosperous than others. He argued that producing more goods and services led to better living standards, and that making it easier for ordinary people to start businesses made societies richer. He laid the groundwork for what governments needed to do to increase their wealth.

The modern variant of capitalism was born. When a country makes it easier for people to conduct business, it grows richer.

That was the idea.

History seems to have proven Smith correct to a large extent. Usually, nations that are wealthier have better living standards. Countries that install policies like what he proposed are better at growing their economies.

But how do we know it wasn't something else that jump-started humanity?

Let's assume wealth was the key. Even then, perhaps it wasn't Smith's policies that led to more wealth, but something else.

Maybe it was the discovery of fossil fuels. Perhaps living standards would have rose regardless.

Democracy started to become popular during that time too. Maybe democratization improves national quality of life, and capitalism doesn't matter. It might even be counterproductive.

Or perhaps the only thing that elevates the human condition is improvements in technology. Economics, politics, capitalism, socialism, democracy; maybe none of it matters.

But I'm getting ahead of myself. How do we even know living standards improved at all since the Industrial Revolution? How can we measure such an abstract concept?

And let's not forget about the environment. Economic growth might be leading us to a mass extinction.

Maybe we should reduce our standard of living.

Inequality and corruption also seem to be getting worse in recent years. More issues that capitalism appears to have ignored. (Or has it?)

Here is a tiny sample of questions answered in this book:

Which nation has the best quality of life in the world? What is it doing right? Should we raise taxes on the rich? Or lower them? Do we need more regulations on businesses? Or less? Should we increase or decrease how much we spend on welfare? What is the effect of unions and the minimum wage on national living standards? What is the best type of tax system? How do we get rid of loopholes? How do we develop sustainably? What is the cause of corruption? How much is there? How do we eliminate it?

Most people have at least some interest in what makes their lives better. Assuming this is a subject you find interesting, do keep reading.