Why Wealth Doesn't Really Exist: A Simple Economics Review

Wealth doesn't exist.

At least not in the way we think of it.

Every time money is made, its almost immediately used to buy things, and its mostly the things we need. Something that's either eaten in a matter of a few weeks or breaks down in a couple years so that you have to get another.

Once the money is spent in this way, its lost any real potential to grow wealth for the spender, but it grows something close to wealth by the retailer/producers.

And this makes sense because the economy requires that money for it continue (money is separate from wealth, which I will explain momentarily).

People require money for the necessities the economy provides them.

So money is in a constant cycle of changing hands and when its not in a constant cycle, it's called a recession or depression.

It's good that people buy things that they need, or a few luxury items like TV and other electronics, but its gotten to a point where people are encouraged to buy it on credit if they don't have it, which re-emphasizes the point that simply having money and things is not real wealth.

If a person were to get laid off, they probably don't have a lot of savings after their job, which puts them in a precarious situation.

This gets me to wealth. The closest anyone will get to wealth is having control over a resource, something that won't fade or disappear (like one hit wonders), such as water and land which will mostly pay for itself with smart management and having more positive than negative transactions with it.

Even owning the rights to water and land, and other resources like gold, still isn't wealth unless you can derive power from them and use it to make public policy go your way, because many people rely on your products in society.

Wealth then is the power you get from owning resources and 'giving' it to grateful consumers.

The other type of wealth is to earn money through your own labor, but selling your labor yourself instead of selling yourself and skills to a company. When you sell your own labor yourself, you are a potential hub for wealth.

And this is what I've come to believe.