Question

wealth also produces wealth..what is meant by this statement?....... NEED A LONG ANSWER

Answer 1

On the first day you've got 10$ on you. You started buying sponges and selling it for a higher price. 3 months later you've got 600$ pure profit from buying sponge and reselling it for a higher price. You started a small company to produce home-made sponges with your wife. And started advertising and selling your own sponges. One year later you've got more money so your small company also grew with you. The more money you've got the bigger your company will get the more money you'll get. *Hope the sponges example was clear*