Wealth

Wealth is the stock of valuable resources owned by a person or household at a given time, after subtracting liabilities. It includes financial assets such as cash, bank deposits, stocks, bonds, and retirement accounts, as well as non-financial assets like real estate, vehicles, and other durable goods. In economics, human capital—the present value of expected future earnings—often functions as a form of wealth, though it is not directly transferable.

Net worth is the standard measure of wealth and is calculated as total assets minus total liabilities. Wealth contrasts with income, a flow measured over time. Wealth assessments may include illiquid assets, such as real estate or business equity, which can be difficult to value or convert quickly.

Across countries and over time, wealth is typically unevenly distributed. A small share of households holds a large portion of total wealth, while many hold modest or negative net worth. Wealth distribution is influenced by factors such as asset prices, inheritance, education, access to credit, and tax systems.

Wealth grows through saving, investment returns, and intergenerational transfers, while it can shrink via consumption, debt, and inflation. Price appreciation, capital gains, and compounding play central roles, and unequal access to financial markets can reinforce disparities between groups.

Policy considerations around wealth include taxation of capital, inheritance or estate taxes, property rights, and programs that build human capital and financial resilience. Debates center on efficiency, equity, and how to balance incentives for investment with broad-based opportunities for wealth accumulation.