IDEAS home Printed from https://ideas.repec.org/p/qed/dpaper/4618.html
   My bibliography  Save this paper

Wealth Concentration Leads To Wealth Extraction

Author

Listed:
  • Savvakis C. Savvides

    (Visiting Lecturer, John Deutsch International Executive Programs, Queen's University, Canada)

Abstract

The paper highlights the importance of good wealth distribution among the economic agents of a country so that the benefits of a free-market economy to work efficiently and create new wealth that fosters economic welfare are at work. Extreme inequality and a dysfunctional banking system deprives the market economy from entrepreneurial skills and innovation competencies. In addition, the risk aversion attitudes of the wealthy lead to an elusive pursuit of return without the risk, but which inevitably, through a failing banking system, results to transferring existing rather than creating new wealth and thereby further exaggerating wealth concentration and inequality.

Suggested Citation

  • Savvakis C. Savvides, 2024. "Wealth Concentration Leads To Wealth Extraction," Development Discussion Papers 2024-05, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:4618
    as

    Download full text from publisher

    File URL: http://cri-world.com/publications/qed_dp_4618.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Savvakis C. Savvides, 2022. "The Disconnect of Funding From Wealth Creation," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 23(2), pages 143-176, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Savvakis C. Savvides, 2024. "The Evolution Of A Rentier Economy And The Suppression Of Economic Welfare," Development Discussion Papers 2024-06, JDI Executive Programs.
    2. Savvakis C. Savvides, 2023. "Risk Analysis in Project Appraisal: The assessment of risk and return in capital investment decisions," Development Discussion Papers 2023-13, JDI Executive Programs.

    More about this item

    Keywords

    Economic development; risk analysis; project evaluation; corporate lending; credit risk.;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:qed:dpaper:4618. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    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.