I've heard the phrase above many times without it ever being defined. So here's my attempt at a definition.
The basic ingredients are peace and prosperity. Peace means the absence of armed conflict at home and abroad. Thus, a peaceful nation is not at war and has low crime. Also, its borders are secure, and its population is roughly stable. High levels of emigration or immigration signal serious problems, and below replacement fertility is a sign that something is disastrously wrong.
As for prosperity, that means low unemployment, high literacy, and a low cost of living. Breaking those down further, low unemployment requires low taxes and few regulations. High literacy requires good schools and libraries. A low cost of living requires cheap food, energy, and housing.
Here are the requirements to get all those things:
-secure the border
-avoid alliances
-build oil refineries and nuclear reactors
-cut spending, taxes, and regulations
-build cheap housing
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