National wealth and national income

National wealth is the sum of all material goods created by human labour throughout the history of society and of the natural resources brought into use. It includes production equipment and buildings (fixed funds), raw material and fuel (circulating funds), stocks of finished goods, non-production objects such as housing, schools and hospitals, the personal property of the population, soil, water and mineral wealth, and also people’s knowledge and experience. The social product created in a year splits into two parts: the part that goes to replace the raw material, fuel and worn equipment used up (the replacement fund) and the newly created value, that is, national income. In modern statistics a country’s economic result is often also measured by gross domestic product (GDP). National income can be raised in two ways: by increasing the number of people employed in producing material goods or by raising labour productivity. After distribution, national income is divided into consumption and saving funds.