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Wealth

What is 'Wealth'

Wealth measures the value of all the assets of worth owned by a person, community, company or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of resources. Specific people, organizations and nations are said to be wealthy when they are able to accumulate many valuable resources or goods.

Explaining 'Wealth'

Wealth is expressed in a variety of ways. For individuals, net worth is the most common expression of wealth, while countries measure by gross domestic product (GDP), or GDP per capita.

What Constitutes Wealth

Perceptions of what constitutes wealth changes over time among societies. The ancient Egyptians once had a monetary system based on wheat. Some cultures have used commodities such as rice and salt in place of money at times. Inuit and Eskimo societies traded in seal oil and blubber, which they could eat as food, or burn as fuel to provide light and heat. African and Native American tribes once traded with wampum and shells, and used those as the basis of their monetary systems. Heads of cattle and livestock are still used as mediums of exchange in some cultures.

Measuring Wealth

Money is the most common, albeit imperfect, means of measuring wealth. The value of a product or material used as the basis for a monetary system depends on how much others are willing to trade or provide labor in exchange for it. Another factor is the degree of universal acceptance the material or commodity has. If no one outside a community is willing to accept the money in exchange for goods or services, it has no value outside of the society that uses it.


Further Reading


Applications of physics to economics and finance: Money, income, wealth, and the stock market
arxiv.org [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

Study on Wealth Effects of M&A of Listed Companies <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200211003.htm' />Study on Wealth Effects of M&A of Listed Companies [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200211003.htm'>PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

Perspectives on behavioral finance: Does" irrationality" disappear with wealth? Evidence from expectations and actionsPerspectives on behavioral finance: Does" irrationality" disappear with wealth? Evidence from expectations and actions
www.journals.uchicago.edu [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

Islamic economics 2.0-creating a halal wealth and knowledge economyIslamic economics 2.0-creating a halal wealth and knowledge economy
gala.gre.ac.uk [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

The governance of global wealth chainsThe governance of global wealth chains
www.tandfonline.com [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

Sovereign wealth funds and the (in) security of global financeSovereign wealth funds and the (in) security of global finance
www.jstor.org [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

A critical financial analysis of the Private Finance Initiative: selecting a financing method or allocating economic wealth?A critical financial analysis of the Private Finance Initiative: selecting a financing method or allocating economic wealth?
www.sciencedirect.com [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

Finance and the Preservation of WealthFinance and the Preservation of Wealth
academic.oup.com [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

Sources of shareholders' wealth gains from asset salesSources of shareholders' wealth gains from asset sales
www.tandfonline.com [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …

Bank acquisition and stockholders' wealthBank acquisition and stockholders' wealth
www.sciencedirect.com [PDF]
Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must follow the exponential …



Q&A About Wealth


What is an example of a tangible asset?

A house would be an example of a tangible asset.

Who can you compare to for rankings regarding wealth?

You can compare countries by their list ranking on a list for equality and per adult.

What does wealth measure?

Wealth measures the value of all the assets owned by a person, community, company or country.

How is wealth determined?

The total market value of all physical and intangible assets owned is subtracted from debts to determine wealth.

How does the distribution of wealth differ from income distribution?

Income distribution looks at current income while wealth distributes ownership in assets.

What does the distribution of wealth show?

The distribution of wealth shows one aspect of economic inequality or economic heterogeneity.

Why do some cultures use commodities as money?

Some cultures have used commodities such as rice and salt in place of money at times because they can be eaten or burned for heat.

What is the definition of wealth?

Wealth is defined as net worth, expressed as:

What are intangible assets?

Intangible assets include patents, copyrights, trademarks and goodwill.