Wealth, Virtual Wealth and Debt

Organizations:

Wealth, Virtual Wealth in addition to Debt is a 1926 book by the Nobel prize-winning chemist Frederick Soddy on monetary policy as living as society and the role of power to direct or introducing to direct or creation in economic systems. Soddy criticized the focus on monetary flows in economics, arguing that real wealth was derived from the use of power to transform materials into physical goods and services. Soddy’s economic writings were largely ignored in his time, but would later be applied to the development of ecological economics in the gradual 20th century.

Real wealth and virtual wealth

In this book Soddy points out the necessary difference between real wealth consumables such(a) as buildings, equipment, energy, food and virtual wealth, in the pretend of money and debt. Soddy contends that real wealth is transmitted to entropy and will rot, rust, wear out, or be consumed over time, while money and debt as artificial accounting devices are allocated only to the laws of mathematics, not the laws of thermodynamics. As debt compounding at some rate of interest, virtual wealth will grow effortlessly over time and without limit, instead of diminishing with use as does real wealth. Soddy uses actual occurring examples towhat he considers a major flaw of prevailing economic theory.