accumulation of capital

Accumulation of capital refers to the process of increasing wealth by saving, investing, or reinvesting resources. It involves setting aside money or assets and using them to generate more wealth over time. For example, when individuals save money in a bank account or invest in stocks, they are accumulating capital. Businesses accumulate capital by reinvesting profits into operations or expansion. This accumulation allows for greater purchasing power and investment in future growth, leading to economic development and increased financial stability. Essentially, it’s about building a financial foundation for future needs and opportunities.