Johann Mathias Kager: Wealth 1622Wealth is created through several means.
Natural resources can be harvested and sold to those who want them.
Material can be changed into something more valuable through proper application of knowledge, skill, labor and equipment.
Better production methods also create additional wealth by allowing faster creation of wealth.
For example, consider our early ancestors. Building a house from trees created something of greater value for the builder. Hunting and firewood created food and fed a growing family. Agriculture converted labor into more food and resources. Continuing use of resources and effort has allowed many descendants to own much more than that first house.
This is still true today. It is more obvious to those working with physical material than to a service worker or knowledge worker. A cubicle worker may not be aware in how many ways their work is creating something which is of more value to their employer than the amount that employer paid to produce it. This profit creates wealth for the owners of the organization. The process also provides income for employees, and suppliers, and it makes the continued existence of the organization possible.