People are the original knowledge carriers of a society.Here it is shown how prosperity will arise in the future where people live, when the individual can secure a stable, safe income for himself as a knowledge carrier by his own efforts. Economic crises, which hitherto faced the individual...

The paper discusses a model in which growth is a negative function of fiscal burden. Moreover, growth discontinuously switches from high to low as fiscal burden reaches a critical level. Growth collapse is associated with a Sudden Stop of capital inflows, real depreciation and a drop in output...