It has been said that wealthy societies are those that can smoothly transfer human energy to capital. What does that mean and why is it so?
2006-12-11 06:54:04 · 2 answers · asked by Ballknock 1 in Social Science ➔ Economics
What's required is free markets; private property rights; well developed financial markets; and legal customs and government frameworks that allow people to buy property with a clear undisputed title and engage in business easily and legally.
What it means is, if someone has a good business idea or is productive in satisfying consumer needs, that person is able to acquire the capital needed to engage in or to expand business. The results in the widespread adoption of productive, value-creating and wealth-creating activity -- which is what has made the wealthy societies wealthy.
2006-12-11 07:03:46 · answer #1 · answered by KevinStud99 6 · 0⤊ 0⤋
Because they have the money to invest, and pay the "human energy".
2006-12-11 07:22:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋