Wealth – Meaning Explained

Explained

All types of goods produced in a specific period of time in a country are called the wealth of that country. Goods can be of different types, durable goods such as factory, mosque or home, some goods are required for immediate consumption for example food, grains etc. and some are intermediate between these such as washing machines, television and radio etc. Wealth generally means a stock of goods existing at a particular time that conform to certain requirements. Such goods must possess four qualities.

Firstly they must have utility – meaning must be capable of yielding satisfaction.
Secondly they must have money value.
Thirdly they must be limited in supply
Fourthly the ownership of such goods must be capable of being transferred from one person to another.
Skills and services are normally excluded from it because they cannot be transferred from one person to another although they do possess the rest of the qualities. That is why wealth is restricted to the tangible goods only JasonTreuSocialWealth.

The ownership of the wealth can be classified into the following three categories

Personal Wealth

It comprises of personal belongings such as jewelry, books, clothes, motor cars, household equipment and house one lives in. All these things give satisfaction, have money value, are limited in supply and their ownership is transferable from person to person.

Business Wealth

It includes things such as factory buildings, raw materials, machinery, railway and airways systems, canals, roads and lands. These are desired normally to produce other goods which can be used as personal wealth or social wealth. This kind of wealth is generally referred to as Land or Capital.

Social Wealth

This type of wealth is collectively owned and includes all property owned by the state or local authorities such as schools, public libraries, town halls, parks, railway stations and government offices

Above are the specific concepts of wealth which strictly deals with our economic activities and financial possessions.

The word wealth is derived from an old English word “weal” and “th” meaning well-being and condition respectively. Now it will be read as ” the condition of well being” and no involvement of finances. How can we achieve the state of well being for that we need to re-categorized it as Genuine Wealth. It is commonly said that “Knowledge is Wealth”, why knowledge and why not money? This will lead us to understand the meaning of Genuine Wealth. It is explained as all those things that make life worthwhile come under the category of Genuine Wealth. It is a process and an accounting tool to get and obtained our core values which we are losing day by day, human life has become imbalance with the materialistic increase in financial possessions and decrease moral vales (genuine wealth). Knowledge is wealth because it increases our moral potential and enhances our mental level with which we can achieve equilibrium in life by applying knowledge to the economic activity and to teach moral values.