Wealth

Wealth is whatever people value. Value is in the eye of the chooser.

Economic growth consists not in increasing output of things, but increasing the generation of wealth.

Trade increases wealth of both parties.


Specialization is a synonym for ‘following one’s comparative advantage’. Producers specialize so that they can expand their possibilities (wealth) by trading for something that is more costly to produce on their own. This is referred to as the Law of Comparative Advantage.


Complex social institutions evolve without a blueprint in advance.


Competition is a result of scarcity. It occurs when people strive to meet the criteria that is being used to ration scarce goods.


Costs depend not only on supply but on demand, too.


The efficient allocation of resources and effective social cooperation enlarge the realm of possibility, but they do not by themselves guarantee the progress of civilization