The analysis of the advantages of a businessman to use capital for business operations rather than consumption

Whether it is more beneficial for business people to consume or to create wealth through business operations is a question worth discussing. This paper argues that it’s more useful by creating wealth. First, taxes paid by the rich can redistribute wealth and narrow the gap between the rich and the poor. Second, successful business people contribute to employment rates and increase the incomes of the poor while earning money. Third, the pursuit of profit by business people is conducive to enhancing labour productivity, promoting technological progress, and thus improving productivity. Besides, the profit-rising process of successful business people can bring many other benefits. However, tax evasion, family-owned business models, and labour exploitation have prevented the benefits of wealth creation from being maximized. This paper puts forward some corresponding suggestions.