THE HEARTY AND CHEERY STATE

Progress is usually defined by the growth rate of real per capita income. It is not a sufficient statistic but one that has to do. The extent to which the accumulation of ordinary human capital is responsible for progress is examined. There is, I contend, no place for a concept of entrepreneurial human capital in a positive theory of growth. Professional human capital appears to be a consequence of growth and not a causal force. In an uncertain world, there is no way to guarantee growth. The best that one can do is to create an environment in which individuals are guaranteed the freedom to pursue those activities that they judge to be in their best interest. ( JEL O40)