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# Modes of Expense Affecting Public Opulence

## Definition

The distinction between spending revenue on immediately consumable items
versus durable commodities, where the latter contributes more to public
opulence by providing useful goods to inferior ranks, encouraging frugality,
and maintaining more productive hands than extravagant hospitality.

## Source Chapter

Book II, Chapter 3

## Context

Smith's final analysis showing how different spending patterns affect
national wealth, arguing that investment in durable goods creates more
lasting economic benefits than consumption of perishable items.

## Economic Domain

Consumption

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