IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpgt/0502068.html
   My bibliography  Save this paper

Law Of Conservation Of Wealth

Author

Listed:
  • Gopinath VadirajaRao Bangalore

    (No affiliation)

Abstract

Law of Conservation is a universal Law and applies to mass, energy and wealth alike. When wealth is changed from one form to the other, the value of transferee form of wealth equals value of transferor form of wealth. This leads to inferance that wealth can neither be created nor be destroyed but can be changed from one form to the other. The principle of Double Entry Method of Bookkeeping rests on this Law. We cannot create a debit/credit without corresponding credit/debit and the assets and liabilities in a balance sheet should match. All classical economic theories and laws are based on this law. Law of Equilibrium and Law of Conservation are inseparable. One is the cause and the other is the effect. The words 'value in exchange' in the definition of wealth are to be deleted. Loss, depreciation and goodwill may/may not have value in exchange but they are expressed in units of wealth. They are added/subtracted to/from other forms of wealth.

Suggested Citation

  • Gopinath VadirajaRao Bangalore, 2005. "Law Of Conservation Of Wealth," General Economics and Teaching 0502068, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpgt:0502068
    Note: Type of Document - doc; pages: 10. Matter, energy and wealth have two properties in common. Law of Conservation and Law of Equilibrium apply to all three. Economics is pure material science.
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/get/papers/0502/0502068.doc
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    law of Conservation and Law of Equilibrium;

    JEL classification:

    • A - General Economics and Teaching

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpgt:0502068. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.