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# Prodigals

## Definition

Economic actors who dissipate capital through unproductive consumption, spending borrowed funds on immediate gratification rather than employing them in ways that generate returns. They act as economic destroyers of value rather than creators.

## Source Chapter

Book II, Chapter 4

## Context

Smith employs this concept to contrast with frugal and industrious borrowers, arguing that lending to prodigals is economically harmful to both parties. The prodigal represents the antithesis of sound economic behaviour in Smith's framework.

## Economic Domain

Consumption

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