Econception What is Wealth?
Aug 29, 2025
Richard Stern, Acting Director at The Heritage Foundation, dives into the intricate nature of wealth, transcending material definitions. He discusses why government ownership in corporations is misguided and the potential dangers of government investments, using recent initiatives as case studies. The conversation also critiques tariffs, revealing their hidden costs on small businesses and the economy. Additionally, Stern addresses inflation as a subtle tax that impacts purchasing power, urging listeners to reconsider wealth's societal implications.
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Wealth Is Productive Capital
- Wealth is the physical tools and capital used to produce goods and services, not paper money.
- Financial claims capture ownership of that productive capital and its future returns.
Richness Is Ownership, Not Cash
- A billionaire's net worth mostly represents ownership of productive businesses, not cash piles.
- Forcibly seizing that wealth would destroy jobs, services, and the businesses that create value.
Capital Stock Outweighs GDP
- The U.S. capital stock (~$90 trillion) is far larger than annual GDP and represents accumulated productive tools.
- That stock enables higher living standards by amplifying labor productivity across society.
