Mississippi Richer Than The UK?

 A recent report, A Growth Mindset, published by the London-based Institute of Economic Affairs (IEA), found that if the United Kingdom were a U.S. state, it would rank 51st in per-capita GDP. In other words, even Mississippi is wealthier than the UK on a per-person basis.

How did that happen?

Two famous observations from history go a long way toward explaining it.

Adam Smith, often regarded as the father of modern economics, introduced the idea of the “Invisible Hand” in The Theory of Moral Sentiments (1759). Smith argued that when individuals pursue their own economic interests in a free marketplace, the cumulative effect benefits society as a whole. This “Invisible Hand” helps determine which goods and services are produced, what prices are charged, and how people are compensated for their work—all through countless voluntary exchanges rather than centralized control.  Best of all, the Invisible Hand does this to society’s ultimate benefit.

More than a century and a half later, President Calvin Coolidge captured a similar sentiment when he remarked in 1925 that “the chief business of the American people is business.” He continued: 

     “…they are profoundly concerned with producing, buying, selling, investing, and prospering in the world.”

Throughout much of our history, the United States has embraced these principles: free enterprise, entrepreneurship, investment, and economic growth. While we have not always lived up to them perfectly, they have been central to the nation’s prosperity.

Of course, GDP per capita is not the only measure of a society’s well-being. Infant mortality, life expectancy, educational attainment, and other indicators also matter. Bhutan has even developed the concept of Gross National Happiness (GNH) as a way of measuring social progress beyond economic output.

Still, strong economic performance remains important because prosperity provides the resources needed to address society’s challenges. It is easier to improve health, education, infrastructure, and quality of life when a nation has created the wealth to support those goals.