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How does wealth grow, or how does wealth multiply ?
This was one question that I had in my mind for quite some time. We all are consuming money for various purposes, then how does an economy grow ? I found an answer yesterday when thinking about social entrepreneurship.
Suppose I have 10 lakhs in my bank account. I build a hotel for that money. I paid 10 lakhs to various vendors contractors, employees etc. My 10 lakhs got distributed among various people. But I still have assets worth 10 lakhs. In effect I doubled the economy, I still have my 10 lakhs with me and also many other have got a share of the 10 lakhs that I spend.
Now it seems to me that If everyone with dead money parked somewhere come forward and put it to some real world business, all the economic problems of the world can be solved. Well, Im really stupid to think that will ever happen. Anyways the concept looks nice.
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1 comment so far ↓
That was a really good one.
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