First, how is the national income distributed among persons? Are there regularities in these statistics? Is it possible to generalize about them?
The nature of wealth changed from merely surviving, to becoming more comfortable, healthier, smarter, more organised, and longer-lived. In modern times, the nature of wealth in advanced societies is now shifting from a form determined by control over physical resources to a form determined by control over information.
Wealth affords its owners the power to determine their destiny.
The more the wealth, the greater this power is. But what exactly is wealth and how does it give its owners this power to determine their destinies?
In the previous paragraph, I mentioned that becoming healthier was one of the forms that wealth took once mere survival became something that could be largely taken for granted.
One who is healthy can do more things and has more options compared to one who is unhealthy. Therefore between a healthy individual and an unhealthy individual, it is the healthy individual who has more control over his destiny and therefore wealthier in that sense.
Let us examine how exactly the wealth that is health comes about. To make our examination simpler, we shall use the far simpler standards of health applicable to the Stone Age.
How does one stay healthy back in the Stone Age? This value would have been wasted if there was no person present to benefit from this value.
|Summary and Concept of Gospel of Wealth||In short, this book is also called "Wealth of Nation". The name of book itself defined what economics is and the study area or subject matter of economics that it covers.|
The heat would have dissipated and the food eventually spoilt. However, a person using this fire benefited from it by becoming healthier. The way cooking and warmth is turned into health in this example illustrates how value is turned into wealth.
The health gained by an individual who cooked his meals and warmed himself with fire gave a certain degree of persistence to the value created by this fire instead of allowing this value to dissipate into the environment.
This is a rather roundabout way of arriving at a very simple definition of wealth: Wealth is captured value. Health indeed is wealth. This capital comes in the form of medical and nutritional knowledge and technology, state-of-the-art gyms, parks and bicycle paths, and advertising to promote healthy lifestyles among many others.
An individual could choose to use their health to party hard every night.
Another could choose to use his health to work extra hours to make some extra money. If we compare the outcome of the activities in these two examples, we find different results in terms of what has become of some of the wealth that is the health expended by these two individuals in their chosen activities.
The first individual will wake up the next morning not only with a hangover and a less-than-ideal outlook towards the workday he faces, but also with a thinner wallet.
The second individual, on the other hand, would have a bit of money in his bank account and the option to work lesser hours in the day he faces having compensated for the foregone income the night before.
With the help of this simple example we are able to come up with an equally simple definition of the concept of wealth management. Managing wealth involves determining how much of it to consume and how much of it to turn to capital i.
There is no point in being wealthy if one cannot indulge once in a while. But then one cannot remain wealthy if one always splurges. The simple principle that consumption dissipates value, whereas capitalisation retains it for future use cannot be ignored.
The natural wealth of the Philippines once lay in its forests. Rather than capitalise on these forests to produce assets that could yield other forms of value persistently, Filipinos consumed forest products by exporting them raw for profit unsustainably as time eventually revealed. A capital-rich society i.
The Philippines, a capital-poor society, consumed relatively huge amounts for timber yet earned far less.Comparable Worth. The idea that men and women should receive equal pay when they perform work that involves comparable skills and responsibility or that is of comparable worth to .
Wealth Maximization Concepts Worksheet Concept Application of Concept in the Scenario Reference to Concept in Reading Increased Revenue Avral Electronics has increased their shareholder base and has increased their revenue by tripling their annual revenues from . I was stunned to read about the wealth of some Americans.
I wish some of it could be shared with our friends in Kenya. Instead of going on a shopping spree in Europe (at 12 percent off), people. Shareholder wealth is the appropriate goal of a business firm in a capitalist metin2sell.com a capitalist society, there is private ownership of goods and services by individuals.
Proof of Concept. Posted May 25, by Ben Carlson. A Wealth of Common Sense is a blog that focuses on wealth management, investments, financial markets and investor psychology. I manage portfolios for institutions and individuals at Ritholtz Wealth Management LLC.
Wealth Management Concepts is a marketing name for securities and investment advisory services offered through Royal Alliance Associates, Inc., member FINRA/SIPC and a Registered Investment Advisor..
This communication is strictly intended for individuals residing in the states of AZ, CO, DE, LA, NM, NY, and WA.