All economic value is distributed among receiver of taxes, profits, and wages. From man, by man, for man. Nature extracted.
Think about any industry and you will find that all that revenue will finally goes to government, capital owner, and labor. Either directly to the company or through it’s supplier.
But how about cost of goods sold and depreciation? Well, those cost are becomes revenue for the supplier, who in turn pays the government, their labor, their capital owner, and their own set of supplier.
Then how about producer of base metals? Well, their revenue is distributed among government, labor, capital owner, machinery and equipment (which is a set of supplier), and fuel.
Then how about the producer of fuel? Now, this is where the first statement becomes very apparent. The revenue that oil company makes is distributed to government, labor, capital owner, machinery and equipment and service supplier.
The ground, nature, out of which oil is extracted, ask and receives no money.
But how about rehabilitation attempts? True, reclamation returns nature to its “previous” state. But all the money spend on rehabilitating nature is distributed to government, labor, and capital owner.
Think about it, all the revenue generated by all economic activity is end up stored at bank accounts or physical notes in wallets or under pillows.
Eh? Don’t people buy assets? Like house?
True, but when you buy a house, you pay with money, which the seller can keep or cash or use to buy other things.
How about machinery? A sizeable amount of assets are machinery.
Yes, due to accounting principle, they are listed as asset, but when the company that owns them buy those machine, they pay the seller with money, who can then keep it or use it to buy other things.
How about liquid assets such as gold? Surely there are value in it.
Again, when you buy gold, you move money from your account to the sellers account. Your gold is an asset worth as much as the money you spent it on, only if there’s someone else willing to give you their money for your gold.
This fact is useful in understanding what is the total wealth of the world?
Among all the crap of “assets” such as houses, land, gold, diamond, machine, inventory which is worth nothing if someone else is not willing to trade their money for,
Not to mention the unholy mess created by virtual wealth such as company shares (seriously, just because some guy willing to buy 1 stock for a certain price, then all stock is assumed to be valued at that price. This fact is used by great effect to inflate stock, often done at markets with weak or corrupt regulators). And then the ridiculously thin mega balloon named derivatives,
It is very easy to misjudged the value of total wealth.
Understanding the above 2 arguments makes it very clear:
That to understand world total wealth, all you need to do is sum all the banks accounts, and assume for some physical cash notes held outside banking system.
All the other “asset” classes, they have been cashed out to the above the instant the buyer transfer the money.