What does 'wealth' refer to in an economic context?

Wealth, in an economic context, refers to a stock of tangible and intangible possessions that an individual or entity owns. This encompasses a variety of assets, such as real estate, stocks, bonds, cash, and personal property, as well as intangible assets like intellectual property or brand value. It is important to note that wealth is measured at a specific point in time, distinguishing it from income, which represents a flow of money earned over a period.

By understanding wealth in this way, one can appreciate the broader implications for economic well-being. Wealth enables individuals to invest, save, and consume in ways that affect economic activity. It also provides a buffer during financial hardships and contributes to overall economic stability. This deeper comprehension of wealth highlights its multifaceted nature and importance within the economy.