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# National Capital Composition

## Definition

The various forms of productive resources available to a nation, including fixed capital (buildings, machinery, improvements to land) and circulating capital (stock of goods, money for circulation, provisions for workers). Smith emphasizes that money typically constitutes only a small and unprofitable portion of total national capital.

## Source Chapter

Book IV, Chapter 1

## Context

Smith argues against the mercantile focus on precious metals by showing that true national wealth consists in the totality of productive resources, of which money is only a small part. He demonstrates that productive capital in the form of tools, buildings, and materials contributes far more to national prosperity than hoarded bullion.

## Economic Domain

Accumulation

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