Abstract

HENDRIK VAN DEN BERG argues that Rand's claim that evidence of capitalism's success is "incontrovertible" cannot be confirmed using familiar annual GDP per capita figures. This article argues that annual GDP per capita cannot logically represent individual welfare because it measures an annual income flow while individuals judge their welfare by their lifetime income. Data are available to measure an economy's capacity to enhance individual lifetime welfare. Not only does this measure come closer to Rand's focus on the individual, it also suggests that the past 200 years of capitalist development have raised individual welfare even more than the familiar, but misleading, annual GDP measures show