Happyland is a country devoted to consumption. The inhabitants spend all of their income on pleasurable things and virtually none on capital investment, human or otherwise. Seriousland is frugal, spending very little on consumption and a great deal on human and physical capital. Ten years from now, which country would you prefer to inhabit?

Clearly, Happyland cannot continue in its present state. With no investment, there will be a decline in productivity, and income should decline accordingly. On the other hand, Seriousland is engaged in a course that will generate both productivity and income growth. Over the long run, Seriousland will be a much better place to live.