Distinguish between Personal Wealth and National Wealth​?

Personal Wealth

  • It means the stock of all goods like houses and buildings, furniture, land, money in cash, money kept in banks, clothes, company shares, stocks of other commodities, etc. owned by a person.
  • Health, goodwill, etc., can also be considered to be parts of an individual’s wealth.
  • In Economics, they are transferable goods (whose ownership can be transferred to another person).
  • These are considered to be components of wealth.

National Wealth

  • It includes the wealth of all the citizens of the country.
  • There are public properties whose benefits are enjoyed by the citizens of the country but no citizen personally owns these goods.
  • Natural resources (mineral resources, forest resources, etc), roads, bridges, parks, hospitals, public educational institutions and public sector projects of various types (public sector industries, public irrigation projects, etc.) are example of public properties.
  • There is some personal wealth which is to be deducted from national wealth.
  • Example, if a citizen of the country holds a Government bond, it is personal wealth. But from the point of view of the Government, it is a liability and, hence, it should not be considered as a part of the nation’s wealth.

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