Wealth Creation Research Essay
Wealth creation is the process of making a person, group or country richer and more successful. Wealth creation is usually through gaining money and valuable assets. The formula for creating wealth is bringing factors of production together and utilizing them. In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith argued that labor, capital and raw materials were necessary for the production. When costs are reduced, for example, through division of labor, production activities create a profit (Adam Smith And “The Wealth Of Nations”, 2009). Profits are then invested in income-generating activities. When this pattern is repeated, wealth is created.Wealth Creation Research Essay
Various studies have confirmed that capital, labor and technology are factors necessary for production activities to lead to profits, and hence wealth. Wealth is not created when resources are not invested. People need to be entrepreneurial in order to get more resources (Gwartney, Stroup, Russell, & Macpherson, 2011). Wealth is created through dynamic competition and entrepreneurship. To compete successfully, one has to come up with innovative new products or lower cost production costs (Gwartney, Stroup, Russell, & Macpherson, 2011).Wealth Creation Research Essay
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The Coca-Cola Company is a beverage corporation based in Atlanta, Georgia. Asa Candler identified an opportunity, bought the Coca-Cola formula and brand and incorporated the Company in 1892. He set up a factory in Georgia and started production in 1892. The Coca-Cola Company has identified more opportunities since, opened branches in over 200 countries, invented new products and acquired other companies such as Minute-Maid. It has acquired the necessary technology that helps reduce costs. It has assets totaling $86 billion.
The Bible emphasizes that individuals have to be honest as they accumulate wealth. People who earn unjustly and do not pay wages are condemned (Jeremiah 22:13). Proverbs 13:11 reads that wealth obtained by fraud diminishes but wealth obtained through labor always increases. The Bible warns against oppression with an aim to get rich. Those who earn justly are always blessed with more. People who are faithful when trusted with modest things are given more to manage (Luke 16:10); it is unlikely for those who cannot be trusted with little things to become honest when they have more.Wealth Creation Research Essay