Principles of Economics by Carl Menger Chapter 2.4 - What is Wealth?

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What is wealth, really? Most people think of wealth as having a lot of valuable things—but in economics, it’s not that simple. In this video, we explore the true meaning of wealth through the ideas of Carl Menger and Austrian Economics. You'll discover that wealth isn’t about owning objects—it’s about owning scarce goods. Only goods that are limited compared to demand count as part of your wealth. Abundant goods, like air or sunlight, don’t belong to anyone’s wealth because they’re freely available to all.
But here’s the twist: if something becomes too abundant, it stops being part of wealth altogether. Imagine mineral water turning from rare to plentiful—suddenly, it no longer adds to anyone’s wealth. This leads to a surprising truth: wealth depends entirely on scarcity.
We also dive into common misunderstandings, like the idea of "national wealth." Is a country truly wealthy just because its citizens own many goods? Or is it just a collection of private wealths with no direct link to overall prosperity? We’ll explain why wealth isn’t an absolute measure of well-being and why true prosperity would mean a world where wealth becomes unnecessary—because everyone’s needs are fully met through abundance.
If you’ve ever wondered how economics defines wealth, why scarcity matters, or why increasing goods can sometimes reduce wealth, this video will give you clear, insightful answers.

Questions Answered in This Content
-What is the true definition of wealth in economics?
-Why do only scarce goods count as wealth?
-How can increasing goods actually reduce wealth?
-What happens when a good shifts from scarce to abundant?
-Is national wealth a real economic concept or just a statistic?
-How does wealth relate to overall prosperity and well-being?
-Why don’t abundant goods like air or water count as wealth?
-What’s the difference between private wealth and collective wealth?
-Can wealth exist without scarcity?
-How should we interpret "national wealth" correctly?

00:00 - Introduction to Wealth
00:10 - Definition of Wealth
00:47 - The Paradox of Wealth
01:28 - The Difference Between Property and Wealth
01:45 - Economic Actors and National Wealth
02:36 - Outro

#EconomicWealth #ScarcityExplained #AustrianEconomics