"Wealth is the result of man's ability to think." -- Ayn Rand

What is the source of all wealth?

Wealth is the result of man's ability to think applied to the sphere of production and trade. Reason, ultimately, is the source of all wealth. As capitalism is the only social system that on principle leaves man free to think, capitalism is only system of wealth creation.

What's the difference between paper wealth and real wealth?

Paper wealth is only of value if it can be used to purchase real wealth. Real wealth is something of value that helps you support your life, i.e., food, housing, Atlas Shrugged, etc.

This is a more complex issue, which my response does not do justice, so I refer the reader to Francisco's Money Speech in Ayn Rand's Atlas Shrugged (pages 410-415 Hardcover). I will be writing more on this topic sometime in the future.

Also see: Distribution of wealth.