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How Wealth Is Created

There’s a misconception of how wealth is created. For many, the creation of wealth may mean investing a small amount of money into the stock market and let it grow from thousands to millions of dollars. However, wealth isn’t about accumulating significant sums money; real wealth is about increasing the standard of living of many individuals.

Sure Bill Gates and Warren Buffet are wealthy people; however; their wealth came from the product and service they provide to consumers that enhance or enrich their lives. For example, Bill Gates is the founder of Microsoft; an American Multinational technology company that is responsible for creating the Windows software program. Today, more than one billion personal computers use the Microsoft Windows operating system.

The Windows software is an essential program for the PC community and gained popularity as an easy to use operating system. The PC itself is another example of wealth creation. The PC allowed millions of individuals access to telecommunication (emails, faxing, scanning), communication (printing), calculations, and leisure (movies, video games).

Wealth Creation, Increases our Standard of Living

The things we have available to us today would not be possible without the invention of PC or even the Windows operating system. The PC has enriched the lives of many and has provided us with more opportunities than our grandparents.

Contrary to widespread belief, wealth is not consumerism. New innovative technologies or an increase in productivity creates wealth for individuals. Often new technology leads to an increase in production. However, to reach these new levels of technology, we as Americans have to become a nation of savers and not consumers.

It’s savings that increase an economy’s economic growth. If a nation saves some of its productivity, they can then use their savings to research new capital goods. An increase in capital goods will lead to an increase in our standard of living. Furthermore, if we continue to squander our wealth and drain our coffers, our economic growth will slow or even stagnate.


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