Popular terms like abundance mentality, wealth consciousness, prosperity mindset or wealth is often much more than money in itself. What’s the difference? Well, some would say it’s the attitude we’ve got about wealth and abundance. If you have the wrong attitude wealth becomes nothing.
The second section perhaps contains original research regarding economics and wealth. For those unfamiliar with the term, economics refers to the study of how people, organizations or institutions organize to meet their ends. In other words it’s the study of why things are the way they are and why they tend to repeat themselves. It is, of course, extremely valuable study that provides insight into how individuals and businesses interact with one another and why the markets operate as they do. Economists use a variety of different techniques and statistical methods to evaluate economies, and while all of them are important there is probably no better tool than economic theory to describe the workings of the marketplace as a whole.
The third area which might be described as economics is wealth. This area is often used as an alternative to the term economics when individuals or businesses need to make sense of how they are managing their assets and where their money is going. The wealth framework includes such elements as resources (a term borrowed from economists), liquid capital assets (also called fixed capital assets) and nontoxic assets such as retained earnings, accounts-receivable funds and financial liabilities. There is also a concept of surplus or potential wealth, which is a concept often used in business schools as a way of classifying wealth. Most often potential wealth refers to current human and material resources minus any future liabilities.
The fourth area of study that matches the previously listed categories is nature. Here we look at natural wealth which is wealth associated with the products and services created by humans. An important part of this definition is the notion of wealth being a natural resource. While some natural wealth is difficult to define, such as fish and certain seafood which humans have exploited for centuries, other natural resources such as clean air and pure water can easily be measured and found. Examples include oil and gas reserves, timber and mining deposits, and agricultural land.
Economics may not be the science of wealth accumulation per se, but it is intimately connected to wealth accumulation through natural means. As noted, economics is used to evaluate the performance of the economy. In particular, economists look at the inflation rate and the level of debt to GDP ratio as well as the performance of various industries and sectors. While these numbers will fluctuate according to factors such as global economics, they provide insight into how the economy is performing relative to its potential.
By using the wealth framework and discussing the four concepts just mentioned, you can see that the process of wealth accumulation is much more complex than many people realize. Just as there are many types of natural wealth, there are also several different perspectives on how to best accumulate them. Many people make the mistake of lumping all capital together under the label “wealth.” They think that this represents an abstract idea of value that can be measured in dollars or other monetary units. However, the process of wealth accumulation is much more complex than this. The real wealth in any economy is made up of both tangible and intangible assets.
One type of wealth that has become critical in recent years is the use of infrastructures. Typically, when something becomes critical, it means that something else outside of the economy fails to do what it is supposed to do. A classic example of this concept is when the internet became critical for businesses to effectively run their operations. Prior to the advent of the internet, businesses depended upon the internal infrastructure provided by phone lines, electricity, and other external sources in order to conduct their daily operations.
However, when the internet was created, it made it easier for businesses to operate from remote locations, thus eliminating the need for expensive infrastructure. Not only has this had a huge economic impact on the overall economy, but it has also had a massive positive impact on the way that wealth is accumulated. In most cases, wealth creation occurs through production and distribution of goods and services. This process creates wealth not only for the higher classes but also for everyone because the bulk of the population actually benefits from the goods and services that are created in the economy. This distribution of wealth allows the lower classes to have access to basic needs while the middle and higher classes experience a lifestyle of affluence through the creation of wealth. With this understanding, it becomes clear that the concept of wealth has become almost irrelevant when it comes to creating wealth in modern society.