In economics, wealth refers to all goods, material or non-material that have market value. According to Forguson, “all material and non-material goods which have a market value are called wealth.”
In simple terms, wealth is the stock of all things that have a price in the market. Examples include bonds, shares, cars, houses, and land.
While knowledge and skills can generate income, they are not considered wealth in economics. Instead, they are part of human capital, the skills and abilities that increase productivity and earnings.
Types of Wealth
Economists classify wealth into three main types based on ownership and origin:
1. Private Wealth
Private wealth refers to the savings or assets held by individuals. These are durable forms of income such as land, houses, savings, or gold, which help individuals secure financial stability.
2. Government Wealth
Government or public wealth includes assets owned by the state, such as roads, bridges, communication networks, railways, and public buildings. These are funded by government revenue and benefit the public collectively.
3. Natural Wealth
Natural wealth includes resources provided by nature such as minerals, forests, soil, and water bodies. These resources are vital for production, especially in agriculture and veterinary sectors, forming the foundation of a nation’s economy.
Wealth and Capital in Economics
All capital is a form of wealth, but not all wealth is capital.
Capital refers to those goods that generate income or aid production, such as machines, tools, or equipment used in industries and farms.
For instance, a tractor is capital because it helps produce more crops. However, a private car used for personal comfort is only wealth, not capital, as it doesn’t generate income.
Understanding this distinction helps agriculture and veterinary students connect economic theory to practical production and resource management.
Conclusion
In economics, wealth represents all valuable goods and assets that hold market value. It may exist in private, public, or natural forms, contributing to economic development. However, not all wealth generates income—only capital does.
For students of agriculture and veterinary science, understanding wealth and capital helps build a foundation for topics like production economics, resource allocation, and sustainable development.
Explore more economics concepts on Pedigogy.com, Nepal’s leading platform for research-based education in agriculture and veterinary sciences. Visit our Economics section here.
Updated on 2 November 2025
