What is the difference between income and wealth? Which is more important for explaining the difference between the haves and the have-nots? Why?
What is the difference between income and wealth? Which is more important for explaining the difference between the haves and the have-nots? Why?"
Income and wealth are critical measures of a family's or an individual's financial stability. Income is the total of earnings from sources, including earnings from a job or a self-owned business, interest from investments and savings, payments from social programs, and many others. Ordinarily, it is calculated on a monthly basis.
Wealth, also known as net worth, is the value of a family's or an individual's possessions, such as a house or a savings account. It describes a sum that has grown over a lifetime or more (since it may be passed across generations). This accumulated wealth serves as a source of retirement income, offers security for future generations, and guards against sudden economic downturns.
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