---
entity_slug: capital_decay_through_excessive_consumption
evaluator: null
evaluated_at: '2026-02-23T04:40:18.737160'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly articulates a specific economic mechanism where
    consumption exceeding production leads to capital depletion and decline. It avoids
    circularity and distinguishes this concept from general economic decline by focusing
    on the consumption-production imbalance as the causal mechanism.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's text, particularly his discussions
    of how nations, like individuals, must live within their means or face capital
    decay. Smith explicitly warns about the consequences of expenses exceeding revenue
    at both individual and national levels.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: "The \"Accumulation\" domain is precisely correct, as this entity describes\
    \ the negative side of capital accumulation\u2014how capital stock can be eroded\
    \ through unsustainable consumption patterns. It directly relates to Smith's core\
    \ concerns about productive versus unproductive labor and capital formation."
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S3 (internal regulation) as it represents a
    critical control mechanism for maintaining system viability, and to S4 (intelligence)
    as it requires monitoring the balance between production and consumption. The
    concept is fundamentally about systemic sustainability rather than being VSM-neutral.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides substantial explanatory power by illuminating the
    structural mechanism through which societies can undermine their own productive
    capacity. It explains not just that decline happens, but specifically how overconsumption
    relative to production creates a destructive feedback loop that erodes the foundation
    for future prosperity.
---

# Evaluation: Capital Decay Through Excessive Consumption

## definition_precision — 4.0 / 5.0

The definition clearly articulates a specific economic mechanism where consumption exceeding production leads to capital depletion and decline. It avoids circularity and distinguishes this concept from general economic decline by focusing on the consumption-production imbalance as the causal mechanism.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's text, particularly his discussions of how nations, like individuals, must live within their means or face capital decay. Smith explicitly warns about the consequences of expenses exceeding revenue at both individual and national levels.

## domain_placement — 5.0 / 5.0

The "Accumulation" domain is precisely correct, as this entity describes the negative side of capital accumulation—how capital stock can be eroded through unsustainable consumption patterns. It directly relates to Smith's core concerns about productive versus unproductive labor and capital formation.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S3 (internal regulation) as it represents a critical control mechanism for maintaining system viability, and to S4 (intelligence) as it requires monitoring the balance between production and consumption. The concept is fundamentally about systemic sustainability rather than being VSM-neutral.

## explanatory_value — 5.0 / 5.0

This entity provides substantial explanatory power by illuminating the structural mechanism through which societies can undermine their own productive capacity. It explains not just that decline happens, but specifically how overconsumption relative to production creates a destructive feedback loop that erodes the foundation for future prosperity.
