Definition of Prosperity

Economists have long defined prosperity in terms of monetary value, gauging a given nation’s prosperity solely on the basis of the total monetary value of the goods and services produced annually. However, critics point out that defining prosperity solely as a function of monetary value is questionable since it fails to recognize quality of life may in fact initiate economic activity that, by the economists’ measure, bolsters prosperity.

It can also happen that communities seeking to increase their prosperity as measured strictly in monetary terms may damage their quality of life and their environment. The situation of one rural community illustrates this point: residents of the community value the local timber industry as a primary source of income, and they the harvest limitations would lower their wages or even cause the loss of jobs.

But critics of the economists’ view argue that this view of the situation overlooks a crucial consideration. Without the harvest limitations, they say, the land on which the community depends would be seriously damaged. Moreover, they point out that the residents themselves cite the abundance of natural beauty as one of the will thus lose much more—even understood in monetary terms—if the proposed harvest limits are not implemented.

Economists respond by arguing that to be a useful concept, prosperity must be defined in easily quantifiable terms, and that prosperity thus should not include difficult-to-measure values such as happiness or environmental health. But this position dodges the issue—emphasizing ease of calculation causes one to disregard substantive issues that directly influence real and quantifiable measure, but it is a poor substitute for an accurate appraisal of literary merit.