If I was a mathematical economist — and I have very, very good reason not to be — I would try to create a formal model for what I call antiprosperity.

What is antiprosperity? It is a strange effect. I hypothesise thus: as nations (and to a lesser extent, people) become more prosperous, they tend toward greater fragility. In other words, fat times create weakness. This is not a universal law, because there are some exceptions. It is more of a tendency. The children of the strong, the hard-working or the wealthy often grow up lazy and stupid and conceited. People who keep winning don’t learn about their weaknesses, and without being aware of their weaknesses their weaknesses can fester and develop into glaring cracks.

An example of antiprosperity is the global system of derivatives. By creating a system of side bets, market participants could “hedge” against any undesired eventualities (for example, shopping chains dependent upon high consumer turnout could create an option on weather — if the weather was poor, and thus their sales were down, the option would payoff, mitigating their losses). By 2008, over $1 quadrillion of derivatives had been created to hedge against inflation, rate spikes, weather, price changes, defaults on debt, climate change, and almost anything imaginable. The problem was that if a counter-party with a large amount of derivatives on their balance sheet fails, then those “assets” become worthless. Any liabilities go unpaid, and so other companies who have agreed to contracts with the bust counter-party may themselves become illiquid due to their losses with the bust counter-party. This can quickly cascade into systemic meltdown. So, to recap, a system designed to “stabilise” global markets — and, let us not forget, was once prophesied as the end to systemic risk — ends up destroying them through unprecedented systemic risk..

I am still trying to understand what causes this mechanism. I think human life tends to be characterised by a steady process of building and breaking. As we learn skills we face setbacks, and failures, we learn from our mistakes and we fix our weaknesses. Humans once had no choice but to work for their food.  Taking away this gradual process — say, by creating a system that guarantees a constant and steady stream of food that requires no work to fulfil — creates a weakness, because the skills necessary to fulfil the pre-existing need become rusty. Western civilisation has become so good at feeding itself that it creates huge surpluses of goods and food. People don’t need to learn to feed themselves. Many people — who take the welfare route to “prosperity” (left-wing readers — yes, this includes bankers, defence contractors, and other corporate welfare recipients) — don’t even need to learn to work. They just suck up the handout and go on their merry way.

This tidal wave of prosperity hides a sickness inside, and we are seeing the first symptoms: overflowing bellies. Why learn the skills necessary to survive in the wilderness when it is easier to sit on your ass, stuffing your face with junk food? After, all the global resource infrastructure that pulls oil out of the ground in the middle east, refines it, ships it in oil tankers to America, and creates petrochemical-based fertilisers that are used to grow crops, produce (what can loosely be described as) food and transport that food to the consumer will always exist, won’t it? Readers are advised to know where their next meal is coming from — and their next meal for six months or a year — if the global system of trade were to break down.

To become stronger we must seek volatility, and to some extent, failure. When I was learning to play the guitar, I didn’t get better by playing pieces I could already play. I got better by seeking out failure by trying to play pieces and measures that were too difficult for me. Failure is beneficial and useful, because we can learn from it. Weakness is beneficial and useful, because we can learn from it.

How can governments and businesses learn the lesson of antiprosperity? Well, Steve Jobs seemed to know a thing or two about it. He was famed for his management style, whereby he lashed employed with vicious criticism to keep them on their toes. Failure and weakness built strength.

Governments should learn to keep welfare nets — both corporate and social — to a minimum. While the vulnerable (e.g. children, the aged, and the severely disabled) should under no circumstances be abandoned, welfare should never become a gold-plated ticket for an easy life. Governments should also peel back barriers to entry and overregulation so that the poor and unemployed can easily become self-employed without having to pass futile certifications, and pay thousands of dollars for licensing.

If we humans cannot avoid the excesses of prosperity, nature is a cruel mistress. What is the punishment for gluttonous obesity? It can become difficult or impossible to find a mate, thus making it difficult or impossible to pass our genes onto the next generation. The obese die younger, and thus turn back into dust sooner than their thinner counterparts.

And so too do societies enamoured with bread, circuses and free lunches. Rome was sacked, and its empire crumbled. Ming China collapsed under the weight of its traditionalism and technophobia. We here in the West — fed fat by the free lunch of petrodollar supremacy, the beauty of globalisation, the power and simplicity of a carbon-driven economy, and the largesse of the state — should heed those warnings. It is estimated that 99.9% of all species that have ever existed are now extinct