Wealth is created by individuals through hard work, ingenuity and the use of available and scarce resources.
Explanation
- Wealth is the measure of the net worth of an organization or an individual, however from an economics perspective it is the measure of the value created by the individual through the application of skills, human ingenuity and effort as also the various scarce and scant available resources. The usage and application of all available factors such as hard work, ingenuity, and availability of important infrastructure in the country is instrumental in the creation of wealth.
- The welfare and prosperity of any country or nation are dependent on these very three crucial factors. The availability of skilled and qualified individuals in any country paves the way for fair chances for wealth creation. This is quite evident from the success stories of different developing and developed countries of the world. India has grown significantly owing to a phenomenal rise in the skilled and technically savvy workforce which has transformed the shape of the Indian economy. The same goes for countries like the US which is the most developed country in the world and where skills and technology are both available in abundance. The country has become one of the world's richest economies due to its extraordinary human ingenuity and skills.
- Furthermore, the use of scarce and important resources are very important for creating wealth. Oil-rich countries in the Middle - East have been able to create wealth because of the continuous and consistent availability of oil. This means just by the availability of oil, countries in the Middle East have been able to sustain and grow their economies.