Just as it is possible to dissociate energy growth from GNP growth, it is possible to dissociate GNP growth from welfare growth. The latter separation could be brought about by the abolition of thepositional goods that are so important in modern economies. If everyone is motivated by the desire to be ahead of the others, then everybody will have to run as fast as they can in order to remain at the same place.Without any change in preferences, welfare levels could be raised if everyone agreed to abstain from this course. By contrast, most proposals to distinguish between ‘real’ and ‘false’, or ‘natural’ and ‘social needs’, imply that preferences should be changed—which immediately raises the spectre of paternalism. One should not confuse the needs that are social in theirobject (positional goods) with needs that are social in theirorigin.