What is/are the difference(s) between 'Capital' and 'Wealth'!?
Being wealthy and having capitals carry same value!
Thorsteinn Siglaugsson and Mijan Rahman like this
No difference, really. Only the concepts are used in different ways. You would talk about the wealth of an individual, not his capital, while you would talk about a company's share capital, not its wealth.
There is difference between Capital and wealth. Capital is the seed money being invested in a business where as wealth is created out of that investment multiplied in the format of tangible as well as intangible assets. In areas other than business it is initial capital investment in equities/ real estate and the market price of investment revealing asset worth.
Read Marx. Whatever else you think of his politics, as an economist, he, along with Adam Smith, built the fundamental understanding as to how a capitalist economy worked.
Well, Marx's predictions for the future of capitalism were actually utterly wrong. On the other hand his materialist theory of history has proven itself to be very useful.
Thorsteinn ... I was not talking about his predictions. I was talking about his basic analysis.
Though I would not hold his mistakes against him as very few market commentators and gurus, bankers and rent boys get it right either.
So a little humility if you please :)
Sorry if I sounded arrogant - this may happen when you proclaim someone to be wrong. The point is Marx's predictions were based on his analysis and however bright he certainly was his basic theory of value creation (labor theory) was wrong.The value of goods is not determined by the labor that goes into producing them. Smith understood this.
The worst thing is I became confused about 'capital' and 'wealth' after reading Marx, Angel and Smith again and again! And I'm convinced that "We are not motivated by the knowledge of economics, we are guided by the conditioned faiths on economics!! For more pl see the discussion https://lnkd.in/bjtPuzA ) and "Our economists do not tell us how economics behaves rather they teach & preach us how we should behave with economics! For more pl see the discussion https://lnkd.in/eucNGvc )
ASSETS ............... that attract and hold the Soul of the Human beings, fascinated by manifestations
What's wrong if I say, "Capital creates Wealth"! If not wrong then 'Capital' is the performing part of 'Wealth' and the ultimate purpose of 'Capital' is growing 'Wealth'!!
Mijan ... people create wealth. They take capital and apply it to a purpose.
its interesting...it is very obvious from the word of accounting perspective...but you trying to say wealth is a silent asset while capital is a producing assets...