View source for Wealth

{{Short description|Abundance of financial assets or possessions}}
{{redirect-several|Wealth|Wealthy|Affluence|Affluent}}
{{Use mdy dates|date=April 2021}}

[[File:World map of median wealth per adult by country. Credit Suisse. 2021 publication.png|thumb|upright=2.0|Countries by '''[[median]]''' wealth ([[US dollars]]) per adult; source: Credit Suisse]]
'''Wealth''' is the abundance of [[Value (economics)|valuable]] [[financial asset]]s or [[property|physical possessions]] which can be converted into a form that can be used for [[financial transaction|transactions]]. This includes the core meaning as held in the originating [[Old English]] word {{lang|ang|weal}}, which is from an [[Indo-European languages|Indo-European]] word stem.<ref>{{cite web|url=http://dictionary.reference.com/browse/weal|title=weal|work=[[The American Heritage Dictionary of the English Language]]|edition=4th|publisher=Houghton Mifflin Company|access-date=February 21, 2009}}</ref> The modern concept of wealth is of significance in all areas of [[economics]], and clearly so for [[economic growth|growth economics]] and [[development economics]], yet the meaning of wealth is context-dependent. A person possessing a substantial net worth is known as ''wealthy''. [[Net worth]] is defined as the current value of one's assets less [[Liability (financial accounting)|liabilities]] (excluding the principal in trust accounts).<ref>{{Cite web|url=http://movies2.nytimes.com/books/first/s/stanley-millionaire.html|title=The Millionaire Next Door|website=movies2.nytimes.com|access-date=September 27, 2018}}</ref>

At the most general level, economists may define wealth as "the total of anything of value" that captures both the subjective nature of the idea and the idea that it is not a fixed or static concept. Various definitions and concepts of wealth have been asserted by various people in different contexts.<ref name="goulet">Denis "Authentic Development: Is it Sustainable?", pp. 189–205 in ''Building Sustainable Societies'', [[Dennis Pirages]], ed., M.E. Sharpe, {{ISBN|978-1563247385}}. (1996)</ref> Defining wealth can be a [[normative]] process with various [[ethical]] implications, since often wealth maximization is seen as a goal or is thought to be a normative principle of its own.<ref>{{cite journal|last=Kronman|first=Anthony T.|date=March 1980|title=Wealth Maximization as a Normative Principle|journal=[[The Journal of Legal Studies]]|volume=9|issue=2|pages=227–242|doi=10.1086/467637|s2cid=153759163}}</ref><ref name="Heilbroner">[[Robert L. Heilbroner]], 1987 [[The New Palgrave Dictionary of Economics|2008]]. ''[[The New Palgrave: A Dictionary of Economics]]'', v. 4, pp. 880–883. Brief preview [http://www.dictionaryofeconomics.com/search_results?q=wealth+%22New+palgrave%22+heilbroner+%22Wealth+is+a+fundamental+concept%22&edition=current&button_search=GO link] {{Webarchive|url=https://web.archive.org/web/20120601152245/http://www.dictionaryofeconomics.com/search_results?q=wealth+%22New+palgrave%22+heilbroner+%22Wealth+is+a+fundamental+concept%22&edition=current&button_search=GO |date=June 1, 2012 }}.</ref> A [[community]], region or country that possesses an abundance of such possessions or resources to the benefit of the common good is known as wealthy.

The [[United Nations]] definition of ''[[inclusive wealth]]'' is a monetary measure which includes the sum of natural, human, and physical assets.<ref name="wealth">{{cite news|url=https://www.economist.com/finance-and-economics/2012/06/30/the-real-wealth-of-nations |title=Free exchange: The real wealth of nations |newspaper=[[The Economist]]|date=June 30, 2012 |access-date=July 14, 2012}}</ref><ref name="Inclusive Wealth Report - IHDP">{{cite web |url=http://www.ihdp.unu.edu/article/iwr |title=Inclusive Wealth Report |publisher=[[IHDP]] |website=Ihdp.unu.edu |date=July 9, 2012 |access-date=July 14, 2012 |archive-date=June 30, 2012 |archive-url=https://web.archive.org/web/20120630055324/http://www.ihdp.unu.edu/article/iwr/ |url-status=dead }}</ref> Natural capital includes land, forests, [[energy resources]], and minerals.  Human capital is the population's education and skills. Physical (or "manufactured") capital includes such things as machinery, buildings, and infrastructure.

==History==
{{expand section|date=January 2019}}
Around 35,000 years ago ''[[Homo sapiens]]'' groups began to adopt a more settled lifestyle, as evidenced by cave drawings, burial sites, and decorative objects.<ref>
{{cite book
 |last1                = Beinhocker
 |first1               = Eric D.
 |year                 = 2006
 |title                = The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics
 |url                  = https://books.google.com/books?id=eUoolrxSFy0C
 |publication-place    = Boston, Massachusetts
 |publisher            = Harvard Business Press
 |page                 = 7
 |isbn                 = 9781578517770
 |access-date          = 4 April 2023
 |quote                = [...] around 35,000 years ago [...] we begin to see the first evidence of a more settled lifestyle, with burial sites, cave drawings, and decorative objects.
}} 
</ref>
Around this time, humans began [[trading]] burial-site tools and developed trade networks,<ref>
{{cite book
 |last1                = Beinhocker
 |first1               = Eric D.
 |year                 = 2006
 |title                = The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics
 |url                  = https://books.google.com/books?id=eUoolrxSFy0C
 |publication-place    = Boston, Massachusetts
 |publisher            = Harvard Business Press
 |page                 = 7
 |isbn                 = 9781578517770
 |access-date          = 4 April 2023
 |quote                = During this period, archeologists also begin to see evidence of trading ''between'' groups of early humans; the evidence included burial-site tools made from nonlocal materials, seashell jewelry found with noncoastal tribes, and patterns of movement suggesting trading routes.
}} 
</ref>
resulting in a [[hunter-gatherer]] lifestyle.<ref>
{{cite book
 |last1                = Beinhocker
 |first1               = Eric D.
 |year                 = 2006
 |title                = The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics
 |url                  = https://books.google.com/books?id=eUoolrxSFy0C
 |publication-place    = Boston, Massachusetts
 |publisher            = Harvard Business Press
 |page                 = 7
 |isbn                 = 9781578517770
 |access-date          = 4 April 2023
 |quote                = With permanent settlements, a variety of tools, and the creation of trading networks, our ancestors achieved a level of cultural and economic sophistication that anthropologists refer to as a ''hunter-gatherer lifestyle''.
}} 
</ref>
Those who had gathered abundant burial-site tools, weapons, baskets, and food, were considered part of the wealthy.<ref name="Beinhocker Eric D. 2007">{{cite book|title=The Origin of Wealth: The Radical Remaking of Economics and What it Means for Business and Society|publisher=Harvard Business Review Press; 1st edition|first=Eric D.|last=Beinhocker|year=2007}}</ref>{{request quotation|date=April 2023}}

[[Adam Smith]], in his seminal work ''[[The Wealth of Nations]]'', described wealth as "the annual produce of the land and labor of the society". This "produce" is, at its simplest, a good or service which satisfies human needs, and wants of [[utility]].

In popular usage, wealth can be described as an abundance of items of economic [[Value (economics)|value]], or the state of controlling or possessing such items, usually in the form of [[money]], [[real estate]] and personal [[property (ownership right)|property]]. A person considered wealthy, affluent, or rich is someone who has accumulated substantial wealth relative to others in their society or reference group.

In economics, [[Wealth (economics)|net worth]] refers to the value of [[assets]] owned minus the value of [[liability (accounting)|liabilities]] owed at a point in time.<ref>{{cite web | title=WWE Superstars net worth and salary |url=http://topnewsage.com/wwe-superstars-net-worth-and-salary/ |access-date=August 27, 2017 |archive-date=August 27, 2017|archive-url=https://web.archive.org/web/20170827043330/http://topnewsage.com/wwe-superstars-net-worth-and-salary/}}</ref> Wealth can be categorized into three principal categories: [[personal property]], including homes or automobiles; monetary savings, such as the accumulation of past [[income]]; and the [[Capital (economics)|capital]] wealth of income producing assets, including [[real estate]], [[stock]]s, [[Bond (finance)|bonds]], and [[business]]es. All these delineations make wealth an especially important part of [[social stratification]]. Wealth provides some people "safety nets" of protection against unforeseen declines in their living standard in the event of emergency and can be transformed into home ownership, business ownership, or college education by its expenditure.

Wealth has been defined as a collection of things limited in supply, transferable, and useful in satisfying human desires.<ref name="Graeme O'Geran">{{cite encyclopedia |title=How Wealth is Created |encyclopedia=World Book Encyclopedia |year=1949 |publisher=The Grolier Society  |volume=15 |page=5357}}</ref> Scarcity is a fundamental factor for wealth. When a desirable or valuable commodity (transferable good or skill) is abundantly available to everyone, the owner of the commodity will possess no potential for wealth. When a valuable or desirable commodity is in scarce supply, the owner of the commodity will possess great potential for wealth.

'Wealth' refers to some ''accumulation'' of resources (net asset value), whether abundant or not. 'Richness' refers to an ''abundance'' of such resources (income or flow). A wealthy person, group, or nation thus has more accumulated resources (capital) than a poor one. The opposite of wealth is destitution. The opposite of richness is [[poverty]].

The term implies a [[social contract]] on establishing and maintaining [[ownership]] in relation to such items which can be invoked with little or no effort and expense on the part of the owner. The concept of wealth is relative and not only varies between societies, but varies between different sections or regions in the same society. A personal [[net worth]] of US$10,000 in most parts of the United States would certainly not place a person among the wealthiest citizens of that locale. Such an amount would constitute an extraordinary amount of wealth in impoverished [[developing country|developing countries]].

Concepts of wealth also vary across time. Modern labor-saving inventions and the development of the [[sciences]] have vastly improved the [[standard of living]] in modern societies for even the poorest of people. This comparative wealth across time is also applicable to the future; given this trend of human advancement, it is possible that the standard of living that the wealthiest enjoy today will be considered impoverished by [[future generations]].

[[Industrialization]] emphasized the role of technology. Many jobs were automated. Machines replaced some workers while other workers became more specialized. [[Labour specialization]] became critical to economic success. [[Physical capital]], as it came to be known, consisting of both the [[natural capital]] and the [[infrastructural capital]], became the focus of the ''analysis of wealth''.{{Citation needed|date=May 2011}}

[[Adam Smith]] saw wealth creation as the combination of materials, labour, land, and technology.<ref name="gutenberg1">Smith, Adam. ''[https://www.gutenberg.org/ebooks/3300 An Inquiry into the Nature and Causes of the Wealth of Nations] {{Webarchive|url=https://web.archive.org/web/20200801054156/http://www.gutenberg.org/ebooks/3300 |date=August 1, 2020 }}''</ref> The theories of [[David Ricardo]], [[John Locke]], [[John Stuart Mill]], in the 18th century and 19th century built on these views of wealth that we now call [[classical economics]].

[[Marxian economics]] (''see [[labor theory of value]]'') distinguishes in the ''[[Grundrisse]]'' between material wealth and human wealth, defining human wealth as "wealth in human relations"; land and labour were the source of all material wealth. The German cultural historian Silvio Vietta links wealth/poverty to rationality. Having a leading position in the development of rational sciences, in new technologies and in economic production leads to wealth, while the opposite can be correlated with [[poverty]].<ref name="Silvio Vietta 2013">{{cite book|title=A Theory of Global Civilization: Rationality and the Irrational as the Driving Forces of History|publisher=Kindle Ebooks|first=Silvio|last=Vietta|year=2013}}</ref><ref name="Silvio Vietta 2012">{{cite book|title=Rationalität. Eine Weltgeschichte. Europäische Kulturgeschichte und Globalisierung|publisher=Fink|first=Silvio|last=Vietta|year=2012}}</ref>

== Global amount ==
[[File:Countries by total wealth (trillions USD), Credit Suisse.png|thumb|Countries by [[List of countries by total wealth|total wealth]] (trillions USD), Credit Suisse]]
[[File:Worlds regions by total wealth(in trillions USD), 2018.jpg|thumb|World regions by total wealth (in trillions USD), 2018]]
{{Main|Global debt}}
The wealth of households worldwide amounts to US$280 [[Orders of magnitude (numbers)#1592|trillion]] (2017). According to the eighth edition of the Global Wealth Report, in the year to mid-2017, total global wealth rose at a rate of 6.4%, the fastest pace since 2012 and reached US$280 trillion, a gain of US$16.7 trillion. This reflected widespread gains in equity markets matched by similar rises in non-financial assets, which moved above the pre-crisis year 2007's level for the first time this year. Wealth growth also outpaced population growth, so that global mean wealth per adult grew by 4.9% and reached a new record high of US$56,540 per adult. [[Tim Harford]] has asserted that a small child has greater wealth than the 2 billion poorest people in the world combined, since a small child has no debt.<ref>[https://www.credit-suisse.com/corporate/en/research/research-institute/global-wealth-report.html "Global Wealth Report."] {{Webarchive|url=https://web.archive.org/web/20190711010352/https://www.credit-suisse.com/corporate/en/research/research-institute/global-wealth-report.html |date=July 11, 2019 }}  (October 18, 2018). Credit Suisse Research Institute. ''Credit-Suisse.com''. Retrieved December 10, 2018.</ref>

According to the 2021 global wealth report by [[McKinsey & Company]], the worldwide total net worth is currently at US$514 trillion in 2020, with China being the wealthiest nation with net worth of US$120 trillion.<ref>{{cite news|url=https://www.straitstimes.com/business/economy/global-wealth-surges-as-china-overtakes-us-to-grab-top-spot-mckinsey-report|title=Global wealth surges as China overtakes US to grab top spot: McKinsey report|date=November 15, 2021|work=[[The Straits Times]]}}</ref><ref>{{cite web|title=Global Wealth Surges as China Overtakes U.S. to Grab Top Spot|url=https://www.bloomberg.com/news/articles/2021-11-15/global-wealth-surges-as-china-overtakes-u-s-to-grab-top-spot|work=[[Bloomberg News|Bloomberg]]|date=November 14, 2021}}</ref><ref>{{cite news|url=https://www.indiatoday.in/business/story/china-overtakes-us-as-richest-country-global-wealth-mckinsey-report-1877299-2021-11-16|title=China overtakes US as world's richest nation as global wealth surges|work=[[India Today]]|date=November 16, 2021}}</ref> Another report, by [[Credit Suisse]] in 2021, suggests the total wealth of the US exceeded that of China, US$126.3 trillion to US$74.9 trillion.<ref>{{cite web |url=https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/global-wealth-report-2021-en.pdf |title=Research Institute: Global wealth report 2021 |publisher=Credit Suisse |date=June 2021 |access-date=29 August 2022}}</ref>

==Philosophical analysis==
In Western civilization, wealth is connected with a quantitative type of thought, invented in the ancient Greek "revolution of rationality", involving for instance the quantitative analysis of nature, the rationalization of warfare, and measurement in economics.<ref name="Silvio Vietta 2013"/><ref name="Silvio Vietta 2012"/> The invention of coined money and banking was particularly important. Aristotle describes the basic function of money as a universal instrument of quantitative measurement{{snd}}"for it measures all things [...]"{{snd}}making things alike and comparable due to a social "agreement" of acceptance.<ref>{{cite book|title=Nicomachean Ethics|page= 1133a|author=Aristotle}}</ref> In that way, money also enables a new type of economic society and the definition of wealth in measurable quantities, such as gold and money. Modern philosophers like Nietzsche criticized the fixation on measurable wealth: "Unsere 'Reichen' – das sind die Ärmsten! Der eigentliche Zweck alles Reichtums ist vergessen!" ("Our 'rich people' – those are the poorest! The real purpose of all wealth has been forgotten!")<ref>{{cite book|title=Werke in drei Bänden. III|page=419|author=Nietzsche}}</ref>

==Economic analysis==
{{Redirect|Savings|the concept of non-expenditure of income per unit of time|Saving|savings as a business objective|Procurement#Performance}}

In [[economics]], wealth (in a commonly applied [[accounting]] sense, sometimes '''savings''') is the [[net worth]] of a person, household, or [[national saving|nation]] – that is, the value of all [[asset]]s owned net of all [[Liability (accounting)|liabilities]] owed at a point in time. For national wealth as measured in the [[national accounts]], the net liabilities are those owed to the rest of the world.<ref>• [[Paul A. Samuelson]] and [[William Nordhaus|William D. Nordhaus]], 2004, 18th ed. ''[[Economics (textbook)|Economics]]'', "Glossary of Terms."<br />&nbsp;&nbsp; • Nancy D. Ruggles, 1987. "social accounting" ''[[The New Palgrave: A Dictionary of Economics]]'', v. 4, pp.&nbsp;377–382, [380].</ref> The term may also be used more broadly as referring to the productive capacity of a society or as a contrast to [[poverty]].<ref>• [[Adam Smith]], 1776. ''[[The Wealth of Nations]]''.<br />&nbsp;&nbsp; • [[David S. Landes]], 1998. ''[[The Wealth and Poverty of Nations]]''. [http://www.cato.org/pubs/journal/cj18n2/cj18n2-9.pdf Review.] {{Webarchive|url=https://web.archive.org/web/20121011215810/http://www.cato.org/pubs/journal/cj18n2/cj18n2-9.pdf |date=October 11, 2012 }}<br />&nbsp;&nbsp; • [[Partha Dasgupta]], 1993. ''An Inquiry into Well-Being and Destitution''. [http://www.oup.com/uk/catalogue/?ci=9780198288350 Description] {{Webarchive|url=https://web.archive.org/web/20070929120800/http://www.oup.com/uk/catalogue/?ci=9780198288350 |date=September 29, 2007 }} and [http://www.nejm.org/doi/pdf/10.1056/NEJM199406163302421 review.] {{Webarchive|url=https://web.archive.org/web/20181215175140/https://www.nejm.org/doi/pdf/10.1056/NEJM199406163302421 |date=December 15, 2018 }}</ref> Analytical emphasis may be on its determinants or [[Distribution of wealth|distribution]].<ref>• [[John Bates Clark]], 1902. ''The Distribution of Wealth'' [https://books.google.com/books?id=ihivl3D7TOcC&dq=Clark++Distribution+&pg=RA1-PR13 Analytical Table of Contents.]<br />&nbsp;&nbsp; • E.N. Wolff, 2002. "Wealth Distribution" ''[[International Encyclopedia of the Social & Behavioral Sciences]]'', pp. 16394–16401. [https://web.archive.org/web/20090324090839/http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B7MRM-4MT09VJ-3SK&_rdoc=11&_hierId=151000138&_refWorkId=21&_explode=151000131,151000138&_fmt=high&_orig=na&_docanchor=&_idxType=SC&view=c&_ct=12&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=9ba159b05baa21f44e844a5aba77e6f1 Abstract.]<br />&nbsp;&nbsp; • Robert L. Heilbroner, 1987. [<nowiki/>[[The New Palgrave Dictionary of Economics|2008]]]). ''[[The New Palgrave: A Dictionary of Economics]]'', v. 4, pp. 880–883. Brief preview [http://www.dictionaryofeconomics.com/search_results?q=wealth+%22New+palgrave%22+heilbroner+%22Wealth+is+a+fundamental+concept%22&edition=current&button_search=GO link] {{Webarchive|url=https://web.archive.org/web/20120601152245/http://www.dictionaryofeconomics.com/search_results?q=wealth+%22New+palgrave%22+heilbroner+%22Wealth+is+a+fundamental+concept%22&edition=current&button_search=GO |date=June 1, 2012 }}.</ref>

Economic terminology distinguishes between wealth and income.  Wealth or savings is a ''[[Stock and flow|stock]]'' variable – that is, it is measurable ''at a date'' in time, for example the value of an orchard on December 31 minus debt owed on the orchard. For a given amount of wealth, say at the beginning of the year, [[Income#Economic definitions|income]] from that wealth, as measurable ''over'' say a year is a ''[[Stock and flow|flow]]'' variable. What marks the income as a flow is its measurement per unit of time, such as the value of apples yielded from the orchard per year.

In [[macroeconomic]] theory the '[[wealth effect]]' may refer to the increase in aggregate consumption from an increase in [[national wealth]]. One feature of its effect on economic behavior is the [[wealth elasticity of demand]], which is the percentage change in the amount of [[consumption (economics)|consumption]] goods demanded for each one-percent change in wealth.

There are several historical developmental economics points of view on the basis of wealth, such as from ''[[Principles of Political Economy]]'' by [[John Stuart Mill]], ''[[The Wealth of Nations]]'' by [[Adam Smith]], [[Das Kapital|''Capital'']] by [[Karl Marx]], etc.<ref>
[[Charles A. Tuttle|Charles Tuttle]], The Wealth Concept. A Study in Economic Theory, Source: The Annals of the American Academy of Political and Social Science , Apr., 1891, Vol. 1 (Apr., 1891), pp. 615–634, Published by: Sage Publications, Inc. in association with the American Academy of
Political and Social Science, {{JSTOR|1008953}}</ref> Over the history, some of the key underlying factors in wealth creation and the measurement of the wealth include the scalable innovation and application of human knowledge in the form of institutional structure and political/ideological "superstructure", the scarce resources (both natural and man-made), and the saving of monetary assets.

Wealth may be measured in [[Real versus nominal value (economics)|nominal or real values]] – that is, in money value as of a given date or adjusted to net out price changes. The assets include those that are tangible ([[land (economics)|land]] and [[Capital (economics)|capital]]) and ''financial'' (money, bonds, etc.). Measurable wealth typically excludes intangible or nonmarketable assets such as [[human capital]] and [[social capital]]. In economics, 'wealth' corresponds to the accounting term '[[net worth]]', but is measured differently. Accounting measures net worth in terms of the historical cost of assets while economics measures wealth in terms of current values. But analysis may adapt typical accounting conventions for economic purposes in social accounting (such as in [[national accounts]]). An example of the latter is [[generational accounting]] of [[social security]] systems to include the [[present value]] projected future outlays considered to be liabilities.<ref>• Jagadeesh Gokhale, 2008. "Generational accounting." ''[[The New Palgrave Dictionary of Economics]]'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_G000203&q=generational%20accounting&topicid=&result_number=1 Abstract] {{Webarchive|url=https://web.archive.org/web/20111002085641/http://www.dictionaryofeconomics.com/article?id=pde2008_G000203&q=generational%20accounting&topicid=&result_number=1 |date=October 2, 2011 }} and  [https://web.archive.org/web/20070613041057/http://www.cato.org/pubs/articles/gokhale-generational_accounting.pdf uncorrected proof.]<br />&nbsp;&nbsp; • Laurence J. Kotlikoff, 1992, ''Generational Accounting''. [[Free Press (publisher)|Free Press]].</ref> Macroeconomic questions include whether the issuance of government bonds affects [[investment (macroeconomics)|investment]] and [[National Income and Product Accounts#Accounting for national product: the right side of the report|consumption]] through the [[wealth effect]].<ref>[[Robert J. Barro]], 1974. "Are Government Bonds Net Wealth?", ''[[Journal of Political Economy]]'', 8(6), pp. [http://econ161.berkeley.edu/Teaching_Folder/Econ_202b_F2000/papers/Barro,_Bonds_Net_Wealth.pdf#page=2 1095–1111.] {{Webarchive|url=https://web.archive.org/web/20110606103443/http://econ161.berkeley.edu/Teaching_Folder/Econ_202b_F2000/papers/Barro,_Bonds_Net_Wealth.pdf#page=2 |date=June 6, 2011 }}</ref>

[[Environmental assets]] are not usually counted in measuring wealth, in part due to the difficulty of valuation for a [[Public good (economics)|non-market good]]. Environmental or [[green accounting]] is a method of [[national accounts|social accounting]] for formulating and deriving such measures on the argument that an educated valuation is superior to a value of zero (as the implied valuation of environmental assets).<ref>• Sjak Smulders, 2008. "green national accounting" ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_G000196&edition=current&q=environment&topicid=&result_number=5 Abstract.] {{Webarchive|url=https://web.archive.org/web/20120511222001/http://www.dictionaryofeconomics.com/article?id=pde2008_G000196&edition=current&q=environment&topicid=&result_number=5 |date=May 11, 2012 }}<br />&nbsp;&nbsp; • [[United States National Research Council]], 1994. ''Assigning Economic Value to Natural Resources'', [[National Academy Press]]. Chapter-preview [http://books.nap.edu/openbook.php?record_id=4844&page=R1 links.] {{Webarchive|url=https://web.archive.org/web/20110607035233/http://books.nap.edu/openbook.php?record_id=4844&page=R1 |date=June 7, 2011 }}</ref>

==Versus social class==
{{multiple image | total_width=450
| image1= Global Wealth Distribution 2020 (Property).svg |caption1= Global share of wealth by wealth group, Credit Suisse, 2021
| image2= Global-share-of-wealth-by-wealth-group-768x409.png |caption2= Global share of wealth by wealth group, Credit Suisse, 2017
}}
[[Social class]] is not identical to wealth, but the two concepts are related (particularly in [[Marxist philosophy|Marxist theory]]),<ref name=":0">{{cite book|author=Grant, J. Andrew|title=Routledge Encyclopedia of International Political Economy: Entries A–F|publisher=Taylor & Francis|year=2001|isbn=978-0415243506|editor=Jones, R.J. Barry|page=161|chapter=class, definition of|chapter-url=https://books.google.com/books?id=a29qBofx8Y8C&pg=PA161}}</ref> leading to the concept of [[socioeconomic status]]. Wealth at the individual or household level refers to value of everything a person or family owns, including [[personal property]] and [[financial asset]]s.<ref>{{Cite web|last=Team|first=The Investopedia|title=Wealth Definition|url=https://www.investopedia.com/terms/w/wealth.asp|access-date=2021-06-13|website=Investopedia|language=en}}</ref>

In both Marxist and Weberian theory, class is divided into [[Upper class|upper]], [[Middle class|middle]], and [[lower social class|lower]], with each further subdivided (e.g., [[upper middle class]]).<ref name=":0" />

The upper class are schooled to maintain their wealth and pass it to future generations.<ref name="Sherraden, Michael 1991">Sherraden, Michael. ''Assets and the Poor: A New American Welfare Policy''. Armonk: [[M. E. Sharpe]], Inc., 1991.</ref>

The middle class views wealth as something for emergencies and it is seen as more of a cushion. This class comprises people that were raised with families that typically owned their own home, planned ahead and stressed the importance of education and achievement. They earn a significant income and consume many things, typically limiting their savings and investments to retirement [[pension]]s and home ownership.<ref name="Sherraden, Michael 1991" />
Below the middle class, the [[working class]] and [[Poverty|poor]] have the least amount of wealth, with circumstances discouraging accumulation of assets.<ref name="Sherraden, Michael 1991" />

==Distribution==
{{Main|Distribution of wealth|List of countries by wealth per adult}}

{{multiple image |total_width=675
| image1= 2021 Household wealth by percentile - United States.svg |caption1= Though the 10th percentile of American households have zero net worth, the 90th percentile has $1.8 million of household wealth.<ref>Fig. 2 of {{cite web |last1=Sullivan |first1=Briana |title=Wealth of Households: 2023 (P70BR-211) |url=https://www2.census.gov/library/publications/2025/demo/p70br-211.pdf |publisher=US Census Bureau |archive-url=https://web.archive.org/web/20250726021914/https://www2.census.gov/library/publications/2025/demo/p70br-211.pdf |archive-date=July 26, 2025 |date=July 2025 |url-status=dead}}</ref>
| image2= 2021 Median household wealth, by highest educational attainment - US.svg |caption2= Higher educational attainment in the US corresponds with median household wealth.<ref name=WealthEducation_2021>{{cite web |title=The Wealth of Households: 2021 / Current Population Reports / P70BR-183 |url=https://www.census.gov/content/dam/Census/library/publications/2023/demo/p70br-183.pdf |last1=Sullivan |first1=Brianna |last2=Hays |first2=Donald |last3=Bennett |first3=Neil |page=5 (Figure 2) |publisher=United States Census Bureau |archive-url=https://web.archive.org/web/20240524023705/https://www.census.gov/content/dam/Census/library/publications/2023/demo/p70br-183.pdf |archive-date=May 24, 2024 |date=June 2023 |url-status=live }}</ref>
| image3= 2021 Median wealth by marital status - US.svg |caption3= Median wealth of married couples exceeds that of single individuals, regardless of gender and across all age categories.<ref>{{cite web |last1=Sullivan |first1=Briana |title=Wealth of Households: 2023 (P70BR-211) |url=https://www2.census.gov/library/publications/2025/demo/p70br-211.pdf |publisher=US Census Bureau |archive-url=https://web.archive.org/web/20250726021914/https://www2.census.gov/library/publications/2025/demo/p70br-211.pdf |archive-date=July 26, 2025 |date=July 2025 |url-status=dead}}</ref>
}}
Although precise data are not available, the total [[household wealth]] in the world, excluding the value of [[human capital]], has been estimated at $418.3 [[Orders of magnitude (numbers)#1012|trillion]] (US$418.3 trillion) at the end of the year 2020.<ref>{{cite web |url=https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html|publisher=Credit Suisse |title= The Global Wealth Report }}</ref>
For 2018, the World Bank estimated the value of the world's produced capital, natural capital, and human capital to be $1,152 trillion.<ref>{{cite book |url=https://openknowledge.worldbank.org/handle/10986/36400|publisher=World Bank Group |title= The Changing Wealth of Nations, 2021 |date=October 27, 2021 |doi=10.1596/978-1-4648-1590-4 |hdl=10986/36400 |isbn=978-1-4648-1590-4 |s2cid=244394817 }}</ref>  According to the [[Kuznets curve]], inequality of wealth and income increases during the early phases of economic development, stabilizes and then becomes more equitable.

{{As of|2008}}, about 90% of global wealth is distributed in North America, Europe, and "rich [[Asia-Pacific]]" countries,<ref>James B. Davies, Susanna Sandström, Anthony Shorrocks, and Edward N. Wolff. (2008). [http://www.wider.unu.edu/publications/working-papers/discussion-papers/2008/en_GB/dp2008-03/ The World Distribution of Household Wealth, p8] {{Webarchive|url=https://web.archive.org/web/20091016112537/http://www.wider.unu.edu/publications/working-papers/discussion-papers/2008/en_GB/dp2008-03/ |date=October 16, 2009 }}. UNU-WIDER.</ref> and in 2008, 1% of adults were estimated to hold 40% of world wealth, a number which falls to 32% when adjusted for [[purchasing power parity]].<ref>James B. Davies, Susanna Sandström, Anthony Shorrocks, and Edward N. Wolff. (2008). [http://www.wider.unu.edu/publications/working-papers/discussion-papers/2008/en_GB/dp2008-03/ ''The World Distribution of Household Wealth''] {{Webarchive|url=https://web.archive.org/web/20091016112537/http://www.wider.unu.edu/publications/working-papers/discussion-papers/2008/en_GB/dp2008-03/ |date=October 16, 2009 }}. UNU-WIDER.</ref> According to Richard H Ropers, the [[wealth inequality in the United States|concentration of wealth in the United States]] is "inequitably distributed".<ref>Ropers, Richard H, Ph.D. ''Persistent Poverty: The American Dream Turned Nightmare''. New York: Insight Books, 1991.</ref>

In 2013, 1% of adults were estimated to hold 46% of world wealth<ref>{{Cite web |url=https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83 |title=''Global Wealth Report'' 2013 |access-date=January 22, 2014 |archive-date=February 14, 2015 |archive-url=https://web.archive.org/web/20150214155424/https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83 |url-status=dead }}</ref> and around $18.5 [[Orders of magnitude (numbers)#1012|trillion]] was estimated to be stored in [[tax haven]]s worldwide.<ref>{{cite web|url=http://www.oxfam.org/en/eu/pressroom/pressrelease/2013-05-22/tax-havens-private-billions-could-end-extreme-poverty-twice-over|title=Tax on the 'private' billions now stashed away in havens enough to end extreme world poverty twice over|work=Oxfam International|date=May 22, 2013|access-date=January 22, 2014|archive-date=December 23, 2015|archive-url=https://web.archive.org/web/20151223000311/https://www.oxfam.org/en/eu/pressroom/pressrelease/2013-05-22/tax-havens-private-billions-could-end-extreme-poverty-twice-over|url-status=dead}}</ref> A fraction of adults have negative [[net worth]], where [[debt]] is higher than assets.<ref name="j185">{{cite journal | last=Dräger | first=Jascha | last2=Pforr | first2=Klaus | last3=Müller | first3=Nora | title=Why Net Worth Misrepresents Wealth Effects and What to Do About It | journal=Sociological Science | publisher=Society for Sociological Science | volume=10 | year=2023 | issn=2330-6696 | doi=10.15195/v10.a19 | doi-access=free | pages=534–558 | url=https://www.ssoar.info/ssoar/bitstream/document/89490/1/ssoar-socsci-2023-drager_et_al-Why_Net_Worth_Misrepresents_Wealth.pdf | access-date=19 July 2025}}</ref>

==See also ==
{{Wikiquote}}
* [[Economic security]]
* [[Financial literacy]]
* [[Gross National Happiness]]
* [[Happiness economics]]
* [[List of countries by gross national savings]]
* [[Productivity-improving technologies]]
* [[Quality of life]]
* [[Saving]]
* [[Working time]]

== References ==
{{Reflist|30em}}

==Further reading==
* Alfani, Guido (2023). ''As Gods Among Men: A History of the Rich in the West''. Princeton University Press. {{ISBN|978-0-691-22712-2}}.
* {{cite encyclopedia|last=Lee|first=Dwight R. |author-link=|editor-first=Ronald |editor-last=Hamowy |editor-link=Ronald Hamowy |encyclopedia=The Encyclopedia of Libertarianism |chapter=Wealth and Poverty|chapter-url=https://sk.sagepub.com/reference/libertarianism/n326.xml|url= https://books.google.com/books?id=yxNgXs3TkJYC  |doi=10.4135/9781412965811.n326 |year=2008 |publisher= [[SAGE Publishing|Sage]]; [[Cato Institute]] |location= Thousand Oaks, CA  |isbn= 978-1412965804 |oclc=750831024| lccn = 2008009151 |pages=537–539}}
* {{cite journal |last1=Wiedmann|first1=Thomas |last2=Lenzen|first2=Manfred |last3=Keyßer|first3=Lorenz T. |last4=Steinberger|first4=Julia K.|author-link4=Julia Steinberger|title=Scientists' warning on affluence |journal=[[Nature Communications]] |date=2020 |volume=11 |issue=3107 |page=3107 |doi=10.1038/s41467-020-16941-y |pmid=32561753 |pmc=7305220 |bibcode=2020NatCo..11.3107W }}

{{Aspects of capitalism}}
{{Wealth|state=expanded}}
{{Authority control}}

[[Category:Wealth| ]]