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# Private Misconduct Versus Public Prodigality

# Private Misconduct Versus Public Prodigality

## Definition

The distinction between individual economic errors and government
extravagance as causes of reduced productive funds. While private misconduct
rarely affects great nations due to compensation by others' good conduct,
public prodigality employing revenue in maintaining unproductive hands can
significantly diminish funds for productive labour.

## Source Chapter

Book II, Chapter 3

## Context

Smith argues that public prodigality is more dangerous than private misconduct
because it operates at scale and is not compensated by others' frugality,
potentially leading to national impoverishment.

## Economic Domain

Regulation

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