The law of wealth accumulation and prosperity (სიმდიდრის დაგროვების კანონი და კეთილდღეობა)
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The paper sets out a new, alternative concept of wealth creation and
growth. The content and composition of wealth, which includes its non-economic
(intangible) species, is presented in extended content. The concept of social
energy - the potential for creating community wealth - has been introduced.
Shown in the creation of wealth are completely and partially free social energy
sources: natural resources - solar energy, climate, soil fertility, mineral wealth,
flora, fauna, hydropower, etc., as well as anthropogenic - in the process of application, knowledge, experience, science and technology, innovative thought
passed down from previous generations and newly acquired and the role in the
production of wealth. Wealth growth has been proven to be the production of a
product obtained as a surplus of profit or expenditure by combining the abovementioned
free resources with labor and means of production. It is substantiated
that the increasing rate of activation of free social energy and the use of capital
(long-term consumption) over several times the production time, as well as the
excess of the productive forces of society, the rate of wealth growth exceeds the
rate of its creation. This is reflected in the law of wealth growth. The distribution
of wealth, the foundations of its fair and unjust distribution, and its impact on
overall well-being are newly discussed. The conditions for the common welfare
of the society are established. Explains when and why economic prosperity is
moving away from increasing overall well-being. The importance of a culture
of wealth consumption, rational and moderate use for the common good and
economic growth is also highlighted. Particular attention is paid to the unfair
distribution of wealth, excessive property inequality, and irrational use in the
pursuit of prosperity. Losses of overall well-being due to the idle economy - the
production, accumulation and consumption of products that do not bring real
benefits are shown. . The existence of such a difference in the present conditions
in the world is confirmed on the basis of factual materials. Overcoming it is
presented as one of the challenges facing humanity
Description
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Keywords
Wealth, social energy, free resources, free social energy, added product, the law of accumulation of wealth, prosperity, ineffective economy
Citation
Economics and Business, №4, 2020, pp. 54-74