Affluence Quote by Louis O. Kelso
“There's only one honest way to measure affluence; that's by comparing the capability of producing goods and services with the desire of people to enjoy them. It's a lousy, crooked trick to compare this society with China or some such place and then say we're affluent. It's a piece of intellectual crookery even to compare this economy with itself ten or twenty years ago. We should compare what we have with what we could have.”
About This Quote
Source Book: Capitalism and Freedom, 1962
Wealth should be judged by the ability to produce what people want, not by comparing to other societies or past data.
In simple terms: Measure wealth by production versus desire, not by flawed comparisons.
Key Takeaway
Focus on potential output, not past or external benchmarks.
Themes
economics
wealth
productivity
comparisons
potential
Mood
analytical
critical
thought‑provoking
Type
economic
philosophical
analytical
When to use this quote
- policy analysis
- business strategy
- personal finance
- development planning
Key Concepts
Capability theory
relative measurement
economic welfare
Questions to Reflect On
- How can we assess true economic well‑being?
- What metrics capture productive capacity accurately?
A Different Perspective
Comparisons can ignore structural differences and distort policy decisions.
