Fundamentals of Prosperity: What They Are and Whence They Come by Roger Ward Babson

The author Roger Ward Babson was an American entrepreneur, economist, and business theorist. He founded Babson College in Wellesley, Massachusetts.

This is a classic book with lessons on moral, spiritual, and cultural factors which are necessary for prosperity.

The author says that foundations necessary for prosperity are ignored. People try and build huge structures on foundations which cannot support it. People also tend to look at what is 'above the ground' and ignore what is required 'below the ground' to support it.

"We then constructed a ten-story building on a foundation meant for only a two or three story building."

The author says that we as a community, "The fact is, we have become crazy over material things."

"With our eyes focused on the structure above ground, we have lost sight of those human resources, thrift, imagination, integrity, vision and faith which make the structure possible."

Focus on consumption

Our lives in a consumer society is driven by consumption.

The environment we live in is about consumption, not production.

We think about consumption, not about production.

Fundamentals of Prosperity

The author talks of fundamentals of prosperity and encourages all to develop them.

Integrity (honesty, truth): "The real strength of that institution rested in the honesty,—the absolute integrity—of its clerks." (Ground level workers).

"The corner-stone of prosperity is the stone of Integrity."

"And it should fall, for, unless the truth be taught, the nation would be much better off without its schools, newspapers, books and professions. Better have no gun at all, than one aimed at yourself."

Vision (and Faith): The author gives examples from his travels in South America and said "They simply lacked faith. They lacked vision. They were unwilling, or unable, to look ahead to do something for the next generation and trust to the Lord for the results."

"Statistics teach that where there is no vision, civilization never gets started! The tangible things which we prize so highly,—buildings, but the result of faith and vision."

"the development of the country as a whole is due to this something, this indescribable something, this combination of faith, thrift, industry, initiative, integrity and vision."

Hard work, Enterprise, and Thrift: "When integrity and vision are combined with hard work, the man prospers."

The author calls this combination of hard work, enterprise, and thrift, Industry. "Third fundamental of prosperity is Industry."

"Why is it that most of the able men in our great industries came from the country districts? The reason is that the country boy is trained to work. Statistics indicate that very seldom does a child, brought up in a city apartment house, amount to much; while the children of well-to-do city people are seriously handicapped."

"Industry and thrift are closely allied. Economic studies show clearly that ninety-five per cent of the employers are employers because they systematically saved money. Any man who systematically saves money from early youth automatically becomes an employer."

"These same studies show that ninety-five per cent of the wage workers are wage workers because they have systematically spent their money as fast as they have earned it."

Co-operation: "Civilization is ultimately dependent on the ability of men to coöperate."

"Our industrial system has resulted in making many men economic eunuchs." They are totally dependent on the government or their employer and unable to grow because they cannot work with each other.

Human Soul: This is the human element. The author calls is 'Human Soul'.

"The real credit for most of the things which we have is due to some human soul which supplied the faith that was the mainspring of every enterprise. Furthermore in most instances this human soul owes this germ of faith to some little country church with a white steeple and old-fashioned furnishings."

"Certainly we are not developing this great spiritual resource in the public schools. The educational system was originally founded by the Church to train we have drifted away from this goal and to-day the purpose for which our the children in the fundamentals of righteousness. Gradually, but constantly, schools were started has been almost entirely lost."

"Boost the Other Fellow": Help others.

"Just as our property is safe, only as the other fellow’s property is safe; just as our daughter is safe, only as the other fellow’s daughter is safe; so is it also true that, in order to develop the human soul in other men, we have to give those men something. We must give them a chance. We must give them opportunity. We must give them a boost."

What truely counts

"We have forgotten the latent power in the human soul, in the individual, in the community, in the different parts of the country. "

"The greatest resources of the world to-day are human resources,—not resources of iron, copper and lumber."

"Prosperity is the result of righteousness rather than of material things."

"Spiritual forces are the true fundamentals of prosperity."

The author shows that religion develops this spiritual strength.

"Whenever this line of religious interest turns downward and reaches a low level, history shows that it is time to prepare for a reaction and depression in business conditions. Every great panic we have ever had has been foreshadowed by a general decline in observance of religious principles."

The author quotes 'President of the Argentine Republic': "I have come to this conclusion. South America was settled by the Spanish who came to South America in search of gold, but North America was settled by the Pilgrim Fathers who went there in search of God."

It is spiritual strength, and good moral and cultural values which are the foundations of prosperity.




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