[Company Logo Image]

Home | What's New | Feedback | Help

About wealth

Case 0: If I harvest wood and build two chairs by my own labor and sell them for $100 each. I will have created wealth of $200 for myself.

My starting wealth ....: $ 0

My ending wealth ......: $ 200 and no chair to sit in

Total starting wealth .: $ 200

Total ending wealth ...: $ 400

Case 1: If I buy materials for $100 and build two chairs by my own labor and sell them for $100 each, I have created wealth of $100 for myself.

My starting wealth ....: $ 100

My ending wealth ......: $ 200 and no chair to sit in

Total starting wealth .: $ 300

Total ending wealth ...: $ 500

Case 2: If I have $200 and my neighbor has $0 and I give him $100 the total wealth remains the same but I have lost $100.

My starting wealth ....: $ 200

My ending wealth ......: $ 100 and no chair to sit in

Total starting wealth .: $ 200

Total ending wealth ...: $ 200

Case 3: If I have $200 and I pay my neighbor $50 to build me a chair, the total wealth is now $300. I have a chair worth $100 and $100 cash, I have paid someone else $50 for the materials and my neighbor has $50.

My starting wealth ....: $ 200

My ending wealth ......: $ 200 and a chair to sit in

Total starting wealth .: $ 200

Total ending wealth ...: $ 300

We create wealth by labor. Capital does not create wealth, but is required to facilitate labor.

Conclusion: Case 3 is the best case for me. I use my wealth to help others, still have my retirement money and a chair to sit in.


Send mail to webmaster@KwBSolutions.com with questions or comments about this web site.
Copyright © 2006 - 2015 Knowledge Based Solutions