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# Perpetual Fund for Maintenance of Labour

# Perpetual Fund for Maintenance of Labour

## Definition

The accumulated capital created through individual saving that provides
continuous employment for productive labour across all future time periods.
Like a founder of a public work-house, a frugal person establishes a fund
that, though not legally protected, is guarded by the evident interest of all
who may ever possess any share of it.

## Source Chapter

Book II, Chapter 3

## Context

Smith uses this concept to show how individual saving creates lasting economic
benefits beyond the immediate year, establishing a permanent capacity for
productive employment that characterizes wealthy nations.

## Economic Domain

Accumulation

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