Wealth – A Philosophical Social Construct and an Economical Concept

Definition
Wealth is both a concept and a social construct, depending on whether it is viewed as a physical accumulation of resources or as the value assigned to those resources by society.

Economically it is simply the sum of all resources of an individual, household, or nation, calculated as the stock of all valuable assets minus total liabilities (debts).

The Creation of Wealth by “Additional Value”
Wealth is created by turning natural resources into usable products and goods. Economically speaking, a large number of contributors are involved in the production of even the smallest items, internationally and nationally. We speak of “additional value”, which is added in every step to a material or produce on its way to become a useable and tradeable item. As an example, lets imagine the journey of a piece of iron ore turning into a simple metallic item (a screw or nail). Literately thousands of people are involved in its making. From the exploration of the ore using heavy machinery, to its fabrication of a useable metal, to the production and engineering of the indented product, its transport, its distribution through export, wholesale and retail; the sheer number of producing, creating and transporting individuals involved is colossal. The many steps and hands involved are too many to list. The same can be said from agricultural items, food and fibre production, which goes through many hands before it ends up on our shelves, tables and bodies. Every step has given the original natural resource an additional value from which those involved in its production benefit.

The None-Economical, Social Construct of “True Wealth”
In some social views, wealth exceeds mere financial accumulation, representing a general state of well-being that includes physical health, strong relationships, personal fulfillment, and the freedom to control one's own time. While defined financially as net worth—assets minus liabilities — “true wealth” is according to those views the capacity to live a fulfilling life.

Nietzsche on Wealth
One such representative of a socially, culturally and psychologically oriented view on wealth can be found in the work of Friedrich Nietzsche. He viewed the modern pursuit of wealth as a symptom of cultural decay, a "savage" obsession that masked a deeper lack of spiritual strength and cause of the decline in courage and resilience. Nietzsche did not condemn wealth or capitalism itself, but rather the relationship to it. He detested how the "money-economy" prioritized comfort, safety, and mediocrity over the higher, creative, and risky pursuit of excellence.

He argued that the hunt for money in the modern era was a "character vice". The modern obsession with material wealth was for him a sign of "a mediocre individual”.

Other Philosophers debated whether wealth serves personal, selfish interests or if it should be used for the greater good, particularly in avoiding the drawbacks of greed.

It appears that those views caught on firmly to our current culture and common beliefs. However, we may want to discuss if this view is entirely realistic and in alignment to how wealth is created and distributed for many to benefit.

Thomas Sowell on Wealth
Sowell, American Economist, emphasizes that wealth must be produced, not just distributed. A central point in practical economics.

For Sowell poverty is the original state of humanity, which does not require a complex explanation; rather, it is prosperity and wealth that needs to be explained.

Sowell argues that focus should be on how wealth is created, not merely how it is divided. He views the obsession with income inequality as a dangerous, politically motivated distraction that ignores the root causes of prosperity.

He writes that intellectuals often overlook the mechanisms of wealth creation, focusing instead on unequal outcomes, which they frequently attribute to malice or systemic failure.
In its core, he argues that wealth creation, rather than redistribution, is the primary solution to poverty.

Debatable Points
The term wealth has recently gained a negative connotation, because we associate it with greed, decadence and unfairness. Whilst those attributes are part of human nature and certainly exist, the question of greater importance is, how we as a society understand the concept of wealth and how we value the creation of it, which is fundamental for the survival of a world economy with more than 8 billion people.

Wealth is often falsely viewed as if it is a commodity which simply exists, like air or water. We just need to distribute it fairly and there is plenty to go around for everybody. But is this so?

Let’s talk about work as a related concept. What is its role? What does it entail? Can we have wealth without work and the sacrifice of personal energy and time? What are the costs of wealth and who should carry them? This and much more…