Wealth is the abundance of valuable financial assets or physical possessions that can be converted into a form used for transactions. It's a concept central to economics, particularly in growth and development studies, though its meaning is context-dependent. A wealthy individual possesses substantial net worth, calculated as the current value of one's assets minus liabilities. Economists broadly define wealth as "the total of anything of value," acknowledging its subjective and dynamic nature. Wealth can be measured in nominal (current money value) or real (adjusted for price changes) terms, encompassing tangible assets like land and capital, and financial assets like money and bonds.
The United Nations uses a broader definition of inclusive wealth, which includes natural capital (land, forests, minerals), human capital (education, skills), and physical capital (machinery, infrastructure). Historically, wealth was linked to land ownership, but has evolved to include intangible assets like stocks, bonds, and intellectual property. Wealth is not synonymous with income; wealth represents accumulated resources, while income is a flow of resources. Wealth inequality remains a significant global issue, with the richest 10% of adults owning 85% of global household wealth.
