Money & Wealth
The theory of money & wealth
The individual pursuit of wealth is what drives the global economy.
This driving force of human nature is the reason for the post-Second World War fall of communism and the success of capitalism.
Scottish Philosopher, Adam Smith, was one of the first to understand this drive. He published An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. It revolutionised the thinking behind internal and global trade.
The first edition of the book sold out in six months, mainly to an enthusiastic political class.
And it forms the backbone for the modern field of economics even today.
The central theory rests upon the fact that people, left to their own devices, create efficient means of trade.
It is not some central authority that dictates the outcome.
This is sometimes referred to as ‘the invisible hand’ of the marketplace.
But here is the crucial finding.
Various independent parties working unhindered in their own self-interest, in an environment of competition, will result in a better outcome for all participants.
The threat of money & wealth
Over the last six decades the world has moves steadily towards Smith’s ideal.
Trade agreements have grown, protectionist barriers have reduced.
The western world is richer than it has ever been. A demonstration of the truth behind the wealth building power of the free markets to benefit not just the few but the many.
But the world is on the edge of forgetting these inherent truths.
Political instability is rife, created by a sense of unequal wealth distribution in some quarters. Populist politicians are on the rise, capitalising on this feeling.
American President, Donald Trump talks regularly about placing tariffs on trade. Elsewhere, China’s state-heavy economy is dangerously inefficient.
There has never been a more are dangerous time for the theories of wealth. Theories that have propelled the world forward since 1945 are in grave danger.
Individual investors must take note and proceed carefully.
To keep up to date with this evolving threat, you can return to this page. Here you’ll find all of our articles on the individual pursuit of wealth, and the economic theories behind it.