A discussion

com/archives/2005/12/16/the-intangible-wealth-of-natio found that the vast majority (60-80%) of the worlds wealth is in the form of intangible capital. Intangible capital refers to the institutions (rule of law, property rights, judicial system) that support economic activity in a nation as well as the human capital inside people’s brains (their knowledge and skills). The rest is made up of the tangible capital such as machines, tools, equipment, and natural resources. The intangible capital in the U.S.A. Was measured at $418,000 whereas in Mexico it was measured at $34,000. Why do you think this intangible capital is so valuable? If intangible capital is vitally important to the wealth of nations, what kind of policies would promote economic growth? (Read the article) How much of one’s economic success depends on skill and how much of it depends on chance?

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