Basing his discussion in the historical evidence, Friedman (2005) argues that economic growth has had significant positive consequences for moral development, increasing the relevance of growth as a logical goal for economic policy. This paper approaches the issue theoretically, by developing an evolutionary model of moral behaviour. In this context, there is a critical difference between economic growth driven by technological change, and that driven by policy incentives. The moral development seen by Friedman is the long-term consequence of technological development, but changes in economic policy that increase economic growth may have negative consequences.
Working paper version available soon.