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# Revenue Destined for Capital Replacement

## Definition

That portion of annual produce which immediately replaces capital by renewing
provisions, materials, and finished work withdrawn from capital. This revenue
maintains only productive hands and pays wages of productive labour, forming
the foundation for continued production and economic growth.

## Source Chapter

Book II, Chapter 3

## Context

Smith divides annual produce into two parts: one replacing capital and one
constituting revenue. This portion is crucial because it determines the
proportion between productive and unproductive hands in society and thus the
general character of inhabitants as to industry or idleness.

## Economic Domain

Accumulation

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