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# Revenue Versus Capital Effects

## Definition

The distinction between policies that affect immediate economic returns (revenue) and those that influence long-term wealth accumulation (capital). Smith argues that protectionist measures may provide short-term benefits to certain groups while reducing overall economic growth.

## Source Chapter

Book IV, Chapter 2

## Context

Smith examines how trade restrictions affect both immediate economic returns and long-term capital accumulation, arguing that while such measures may benefit specific industries in the short term, they typically reduce overall economic growth and prosperity.

## Economic Domain

Accumulation

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