I just published my latest book, "Poverty and Prosperity."

About the book

A friend recently asked me what brought me to write it. My answer: frustration.

"Frustration with what?," you might ask.

The introduction of the book, copied below, answers this question.

The introduction of Poverty and Prosperity

"'Productive societies redistribute prosperity;
unproductive ones redistribute poverty"

We live in an age of unprecedented wealth, yet our prosperity hangs by a thread. I watch with growing concern as some of our politicians erode its foundations. Even worse, they do so with impunity: most journalists do not call them out, nor do most voters, who, after all, elected them.

Why? Because we take prosperity for granted. But history teaches us that prosperity is not the norm; poverty is, and we are always a few bad decisions away from regressing into it. Consider Venezuela: once the wealthiest country in South America, it is now the poorest.

We have lost track of how we arrived at our current position and what it takes to maintain it. Instead of celebrating those who create prosperity, we elect those who redistribute it, until only crumbs remain. We optimize the present while neglecting to build the future.

I wrote this book as both a warning and a guide. For readers in wealthy countries, it is a wake-up call: here are the policy mistakes that can undo decades of progress, and here is how to spot them before it is too late. For those in developing nations, it serves as a roadmap to prosperity, illustrating which strategies are effective and which are not.

Most importantly, it provides everyone with the tools to advocate for better policies, whether at the dinner table or the voting booth. The goal is to help build countries that are wealthier, cleaner, safer, and freer.

Book overview

This book comprises three parts and twenty-six chapters.

The Prologue examines a recent environmental preservation project in Great Britain to explain why the efficiency of public spending matters. Through the lens of two fictional countries, Moralia and Pragmatia, it shows how practical approaches to public spending often yield better results than purely moral ones.

Part I, “Scarcity and Abundance,” explores the choices that lead nations to prosperity or poverty. It argues that prosperity arises from creating abundance through efficiency and accountability. A society needs surplus production to provide a decent life for all and sustain institutions that uphold fairness, health, and sustainability. We need not maximize productivity, but must keep it above a critical threshold. Productive nations share prosperity, unproductive ones share poverty.

How can we, however, boost national productivity without cutting corners or exhausting ourselves? One key is letting wages signal which jobs society values most, allowing unproductive jobs to fade naturally while helping affected workers transition. Nations prosper when they treat low wages and high prices as structural issues, and decline when they rely on superficial fixes.

Examining policy missteps around the world, we uncover another path to poverty: swelling opportunity costs. Nations grow poorer when they focus on the wrong priorities or spend tax money inefficiently. Instead of debating tax rates, we should concentrate on spending current tax receipts more wisely. Part I concludes with a review of principles and policies that promote prosperity and prevent poverty.

But why do nations so often make poor choices that lead to decline? This question drives Part II.

Part II, “Virtue and Decadence,” investigates the cultural factors behind good and bad policy decisions. Using examples from around the world, it shows how nations decline when they pursue luxuries before securing basic needs. Rushing to solve problems can mean overlooking stronger, long-term solutions.

The dangers of groupthink deserve special attention, especially in identity politics, where the urge to protect "our own" can sometimes excuse poor behavior. As the saying goes, the road to hell is paved with good intentions; therefore, intentions must be subordinate to outcomes.

We also examine the critical role of journalism in preserving democracy and prosperity. Nations thrive when truth circulates and falter when it is obscured. Better scientific peer review, falsifiable policies, and journalists who resist short-term political pressures are essential.

While Part I offered economic solutions and Part II presented cultural ones, implementing them is not simple. It is essential to avoid becoming tyrants while we pursue prosperity.

Part III, “Utopia and Dystopia,” addresses this challenge. It shows how good intentions can lead to disastrous outcomes and offers safeguards.

We explore democracy's paradox: although democratic systems are superior to dictatorships, many autocracies emerged from democracies. What warning signs indicate we are sliding toward autocracy, and how can we reverse it before it is too late?

We also examine the foundations of civilization and how to prevent its decline into barbarism. One key principle stands out: to preserve our rights, we must guarantee them even to our enemies.

Finally, we discuss the thin line between utopias and dystopias: the dangerous belief that the end justifies the means. Coercion can never achieve utopia, for it instantly turns into dystopia. Does this make utopia impossible? I offer an optimistic perspective and a possible way forward.