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Paper wealth means wealth as measured by monetary value, as reflected in price of assets – how much money one's assets could be sold for. Paper wealth is contrasted with real wealth, which refers to one's actual physical assets.

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  • Paper wealth (en)
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  • Paper wealth means wealth as measured by monetary value, as reflected in price of assets – how much money one's assets could be sold for. Paper wealth is contrasted with real wealth, which refers to one's actual physical assets. (en)
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  • Paper wealth means wealth as measured by monetary value, as reflected in price of assets – how much money one's assets could be sold for. Paper wealth is contrasted with real wealth, which refers to one's actual physical assets. For example, if one owns a house and its assessed value increases (relative to the general price level, i.e., assuming no inflation) then one's paper wealth has increased – the asset has increased in value, meaning it could in principle be sold in exchange for a larger quantity of money, but one's real wealth is unchanged – the real asset is still the same house. It is said that one has "gotten richer on paper," meaning "as an accounting matter": numbers on a balance sheet have changed, but the physical world has not. The term "paper wealth" is frequently used in popular discussions of wealth, and in some critiques of capitalism, finance, and certain economic theories, but is little-used in mainstream economics, which instead generally identifies wealth with paper wealth. The term "paper wealth" has some pejorative connotations, suggesting "only on paper (but not in reality)", but can also be used neutrally to mean "(simply) as an accounting matter". Related distinctions are sometimes drawn between real assets and financial assets, or between tangible assets and intangible assets, the latter particularly in accounting, as detailed below. (en)
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