What is the connection between the concepts of economics and wealth? What are the examples?

The concept of ‘economics’ is quite wide, it is a science, a system of economic relations, and a set of state enterprises. But in general, the economy refers to economic activity. At the same time, the economy can be effective or not, that is, it can bring to its participants both abundance and poverty.

Wealth is essentially the result of the economy and at the same time its engine. As an example, take the basis of the basics: peasant farm. If the farmer conducts things competently, that is, it works well, grows that it is in demand on the market, and sells products favorably, then it becomes rich.

Further, the farmer begins to invest his wealth in something or – maybe he will build a new stable, he can pay for his son, or he will put in the bank under a percentage. In all cases, his wealth will begin to work, it will become the driving force of the economy, and will create a new wealth.

But if the farmer is not very smart, and will put its wealth unsuccessfully, or completely put them under the pillow, then the economy may slow down, having lost resources. Today we are observing this in Russia: many businessmen bring their wealth abroad, do not invest them in the economy, do not build new factories, and the development of the Russian economy is slowing down, and businessmen themselves lose new potential sources of wealth.

In all forms of society, there are such concepts as personal and public (national) wealth, between which there is the most direct connection. So, for the development and prosperity of the state, priorities are placed especially clearly: the generation of public wealth should be in the first place, personal wealth occupies an honorable second place.

Building a healthy economy is possible only in those societies where the state monitors observing the balance so that the process of accumulating personal capital does not damage the public.

Consider this position by example. For example, the investor invests money in the road surface. He can use cheap materials and get super -profits, however, the existing special services should evaluate the quality of the materials used and prevent the use of low -quality, because the condition of the road (read – public wealth) should be in the first place, and the investor’s profit, respectively, is in the second.

To answer this question, we will define two concepts.

The economy is called science, the subject of the study of which is the economic activity of a person and everything related to it. That is, everything related to the material world, buying and monetary circulation is the field of studying the economy.

Wealth is called an excess of any resources. That is, if you have more resources than you need, then we can conclude that you have wealth.

From these two definitions it becomes clear that there is a relationship between them. Wealth is essentially one of the subjects that the economy studies, since wealth can be a consequence of human economic activity. For example, we can use knowledge from the economy, study the market demand market if we conduct entrepreneurial activities. And if we correctly studied demand, we will sell the demanded product, which will bring us profit. And if the profit is stable, this will lead us to enrichment.

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