The Keys to Prosperity

The Keys to Prosperity

The Keys to Prosperity

The Keys to Prosperity


In the same year that America declared its independence, that monumental work, The Wealth of Nations, was published in England. Its author was Adam Smith -- "the father of economics." What an amazing man he was! Before he wrote, no systematic treatise on economics existed. But, by gathering material from a thousand sources, by observing painstakingly, and by reasoning precisely, he was able to set forth clearly the essentials which must underlie national prosperity.

One hundred and seventy-one years have passed since Adam Smith finished his masterpiece, and the field of economics has been explored by thousands of inquiring minds, yet surprisingly few of the principles which he laid down have been overturned. In the main, they stand as firm as the Rock of Gibraltar.

The principal result of the extensive research conducted since Smith's day has been to fill in gaps and round out his conclusions. Some of the most important additions to the fundamentals set forth in The Wealth of Nations have resulted from pure deductive reasoning. Others have been made possible by the accumulation of masses of statistical data and by the developments of new statistical techniques. Major advances have occurred in our understanding of the principles governing population, interest rates, the relationship of prices to money and credit, the workings of monopoly, and cyclical movements in economic phenomena. It therefore seems desirable again to have restated the basic essentials underlying national prosperity -- in this restatement utilizing the pertinent contributions of science made during the years between 1776 and 1948. Such is the task essayed by the present writer in preparing this volume.

In this undertaking, it has seemed necessary to clear away a great tangle of misconceptions and fallacies under which economic truths have been buried so deeply that it has required a trained eye to detect them. It is hoped that this task has been done thoroughly enough to enable the reader to distinguish readily the true from the false.

The author wishes to express his appreciation of the valuable help given to him by the members of his family, by Mr. Fred Sexauer, and by Dr. Orval Watts. He is especially indebted to Mr. Norman Lombard, who read the entire manuscript with meticulous care and offered numerous suggestions which eliminated many weaknesses. The steady encouragement given by Dr. Edward A. Rumely has been a constant inspiration.


Douglaston, New York, January 20, 1948 . . .

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