Toward a Theory of Welfare Based on Assets

The question is: What constitutes welfare (well-being) under the social and economic conditions of welfare capitalism? ¹ The thesis of this book is that the answer lies, in part, in accumulation of assets—not income alone, but assets as well. Therefore, a dynamic welfare theory that incorporates the economic and behavioral effects of asset accumulation is perhaps required. Because such a theory does not already exist, the purpose of this chapter is to attempt, in a preliminary way, to construct it. ²