Question

Write a couple paragraphs about why wealthy families share money; less wealthy share work/effort.

Answer 1

An economy prospers and economic activities accelerate when the capital is complemented by the labor. Here, the excess capital is owned by the wealthy families and labor hours are owned by the less wealthy people. So, when the capital of the wealthy people and labor hours of the less wealthy people come together, a synergy is created and resources are efficiently allocated. It brings the production activities and economy grows. Besides, there is an ownership being created for the less wealthy people as an important stakeholder that builds synergy between these two group of people and trust also builds up, an important consideration for the success of the overall economic system.
The concept also gets the strength from the philosophy of invisible hands that say that production activities takes place to maximize the wealth and it creates the opportunity for the people who want to work. Here, capital and labor are the important input factors of production that will be sold in the factors market. An adequate combination of these two factors, can help the production activity to take place and create jobs even for the poor people. So, a combination of capital and labor creates a tool that can involve everyone in the economy. It is the reason that above mentioned statement is given.