infospace: process book-2-chapter-03
Extract entities, map to VSM, and synthesize analysis.
This commit is contained in:
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# Entities: book-2-chapter-03
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{{ include "productive-and-unproductive-labour.md" }}
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---
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{{ include "capital-accumulation.md" }}
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---
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{{ include "revenue-destined-for-capital-replacement.md" }}
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---
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{{ include "revenue-constituting-profit-and-rent.md" }}
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---
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{{ include "spare-revenue.md" }}
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---
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{{ include "funds-for-maintaining-productive-labour.md" }}
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---
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{{ include "funds-for-maintaining-unproductive-hands.md" }}
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---
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{{ include "proportion-between-productive-and-unproductive-hands.md" }}
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---
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{{ include "frugality-versus-prodigality.md" }}
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---
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{{ include "perpetual-fund-for-maintenance-of-labour.md" }}
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---
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{{ include "encroachment-upon-capital.md" }}
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---
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{{ include "exportation-of-gold-and-silver-as-effect-of-declension.md" }}
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---
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{{ include "increase-of-money-as-effect-of-prosperity.md" }}
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---
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{{ include "private-misconduct-versus-public-prodigality.md" }}
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---
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{{ include "natural-progress-of-improvement.md" }}
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---
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{{ include "modes-of-expense-affecting-public-opulence.md" }}
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--- ENTITY: productive and unproductive labour ---
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# Productive and Unproductive Labour
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## Definition
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A fundamental classification of economic activity distinguishing labour that
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adds value to materials through transformation into vendible commodities from
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labour that provides services without creating lasting value. Productive labour
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fixes and realizes itself in particular subjects or commodities that endure
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after the labour is past and can be stored, exchanged, or employed again,
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while unproductive labour perishes in the very instant of performance without
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leaving any vendible commodity or value that can be stored or exchanged.
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## Source Chapter
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Book II, Chapter 3
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## Context
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The central analytical framework of this chapter, introduced to explain how
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different types of labour affect capital accumulation and economic growth.
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Smith uses this distinction to show why manufacturers grow rich while those
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maintaining unproductive servants grow poor, and how this affects the overall
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productive capacity of a nation.
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## Economic Domain
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Production
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---
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--- ENTITY: capital accumulation ---
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# Capital Accumulation
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## Definition
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The process by which savings from revenue are added to capital stock, enabling
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the employment of additional productive labour. Capital grows through
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parsimony when individuals save part of their revenue and either employ it
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themselves in maintaining productive hands or lend it to others, creating a
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perpetual fund for maintaining productive labour across time.
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## Source Chapter
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Book II, Chapter 3
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## Context
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The chapter's primary focus, explaining how individual saving behavior
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accumulates into national capital growth. Smith argues that parsimony, not
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industry, is the immediate cause of capital increase, and that this process
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determines whether a nation tends toward industry or idleness.
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## Economic Domain
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Accumulation
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---
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--- ENTITY: revenue destined for capital replacement ---
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# Revenue Destined for Capital Replacement
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## Definition
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That portion of annual produce which immediately replaces capital by renewing
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provisions, materials, and finished work withdrawn from capital. This revenue
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maintains only productive hands and pays wages of productive labour, forming
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the foundation for continued production and economic growth.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith divides annual produce into two parts: one replacing capital and one
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constituting revenue. This portion is crucial because it determines the
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proportion between productive and unproductive hands in society and thus the
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general character of inhabitants as to industry or idleness.
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## Economic Domain
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Accumulation
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---
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--- ENTITY: revenue constituting profit and rent ---
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# Revenue Constituting Profit and Rent
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## Definition
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That portion of annual produce which forms revenue either as profit of stock
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or rent of land. This revenue may maintain either productive or unproductive
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hands indifferently, unlike capital replacement revenue which maintains only
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productive labour. It represents the surplus after capital renewal.
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## Source Chapter
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Book II, Chapter 3
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## Context
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The second major division of annual produce, distinguished from capital
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replacement revenue. Smith notes that owners of this revenue often show
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predilection for maintaining unproductive hands, affecting the overall
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productive capacity of society.
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## Economic Domain
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Distribution
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---
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--- ENTITY: spare revenue ---
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# Spare Revenue
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## Definition
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That portion of revenue which remains after necessary subsistence is met and
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which may be employed in maintaining either productive or unproductive hands.
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Productive labourers have little spare revenue, while landlords and merchants
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have most to spare, giving them greater influence over the proportion of
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productive versus unproductive labour in society.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith explains how different social classes use their revenue, noting that
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spare revenue is the key determinant of whether additional labour will be
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productive or unproductive, thus affecting capital accumulation and economic
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growth.
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## Economic Domain
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Distribution
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---
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--- ENTITY: funds for maintaining productive labour ---
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# Funds for Maintaining Productive Labour
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## Definition
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The capital and revenue sources that employ productive hands whose labour
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adds value to materials. These funds are much greater in rich countries and
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bear a much greater proportion to those likely to be employed in maintaining
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idleness, determining the general character of inhabitants as industrious or
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idle.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith argues that the proportion between these funds and those for maintaining
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unproductive hands determines whether a country tends toward industry or
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idleness, with rich countries having larger proportions of productive labour.
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## Economic Domain
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Production
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---
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--- ENTITY: funds for maintaining unproductive hands ---
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# Funds for Maintaining Unproductive Hands
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## Definition
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Capital and revenue sources that employ unproductive labourers and those who
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do not labour at all, including servants, soldiers, churchmen, lawyers,
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physicians, and entertainers. These funds tend to have predilection for
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unproductive labour, especially among the wealthy, affecting the overall
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productive capacity of society.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith contrasts these funds with those for productive labour, noting that
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their proportion determines whether a society tends toward industry or
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idleness, and that rich countries often maintain larger proportions of
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unproductive hands.
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## Economic Domain
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Production
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---
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--- ENTITY: proportion between productive and unproductive hands ---
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# Proportion Between Productive and Unproductive Hands
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## Definition
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The ratio determining the relative numbers of productive labourers who add
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value to materials versus unproductive labourers who provide services without
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creating vendible commodities. This proportion depends on the relative size
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of funds for maintaining productive versus unproductive hands, and determines
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whether a country tends toward industry or idleness.
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## Source Chapter
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Book II, Chapter 3
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## Context
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The central analytical relationship in the chapter, showing how the division
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of annual produce between capital replacement and revenue affects the overall
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productive capacity and economic character of a nation.
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## Economic Domain
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General Theory
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---
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--- ENTITY: frugality versus prodigality ---
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# Frugality Versus Prodigality
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# Frugality Versus Prodigality
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## Definition
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The contrasting principles governing individual and public expenditure that
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determine capital accumulation. Frugality increases public capital by saving
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revenue for productive employment, while prodigality diminishes it by
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consuming capital through excessive expenditure on unproductive labour and
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consumption.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith presents this as the fundamental economic choice affecting national
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wealth, arguing that individual frugality accumulates capital while
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prodigality destroys it, with public prodigality being particularly harmful
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when it employs revenue in maintaining unproductive hands.
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## Economic Domain
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Accumulation
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---
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--- ENTITY: perpetual fund for maintenance of labour ---
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# Perpetual Fund for Maintenance of Labour
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# Perpetual Fund for Maintenance of Labour
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## Definition
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The accumulated capital created through individual saving that provides
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continuous employment for productive labour across all future time periods.
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Like a founder of a public work-house, a frugal person establishes a fund
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that, though not legally protected, is guarded by the evident interest of all
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who may ever possess any share of it.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith uses this concept to show how individual saving creates lasting economic
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benefits beyond the immediate year, establishing a permanent capacity for
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productive employment that characterizes wealthy nations.
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## Economic Domain
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Accumulation
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---
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--- ENTITY: encroachment upon capital ---
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# Encroachment Upon Capital
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## Definition
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The process by which individuals who spend beyond their income consume their
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capital stock, perverting funds consecrated to productive employment for
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maintaining unproductive labour. This diminishes the quantity of labour that
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adds value to subjects and consequently reduces the real wealth and revenue
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of the country's inhabitants.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith describes how prodigality leads to capital consumption, comparing it to
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perverting revenues of pious foundations to profane purposes, and showing how
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this behavior impoverishes both the individual and the country.
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## Economic Domain
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Accumulation
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---
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--- ENTITY: exportation of gold and silver as effect of declension ---
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# Exportation of Gold and Silver as Effect of Declension
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## Definition
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The consequence rather than cause of economic decline, where diminishing
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annual produce leads to reduced domestic circulation of money, forcing its
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exportation to purchase consumable goods abroad. This exportation continues
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for some time to support consumption beyond the value of domestic produce.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith refutes the mercantilist view that gold and silver export causes
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economic decline, arguing instead that it is the effect of declining
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production and can even temporarily alleviate the misery of declension.
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## Economic Domain
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Exchange
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---
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--- ENTITY: increase of money as effect of prosperity ---
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# Increase of Money as Effect of Prosperity
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## Definition
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The natural consequence of economic growth where increased annual produce
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requires greater money circulation. The increased produce naturally employs
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itself in purchasing additional gold and silver necessary for circulating the
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rest, making monetary increase the effect rather than cause of public
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prosperity.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith's complementary argument to the previous entity, showing that monetary
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growth follows rather than leads economic development, refuting mercantilist
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concerns about money scarcity.
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## Economic Domain
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Exchange
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---
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--- ENTITY: private misconduct versus public prodigality ---
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# Private Misconduct Versus Public Prodigality
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# Private Misconduct Versus Public Prodigality
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## Definition
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The distinction between individual economic errors and government
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extravagance as causes of reduced productive funds. While private misconduct
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rarely affects great nations due to compensation by others' good conduct,
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public prodigality employing revenue in maintaining unproductive hands can
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significantly diminish funds for productive labour.
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## Source Chapter
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Book II, Chapter 3
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## Context
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Smith argues that public prodigality is more dangerous than private misconduct
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because it operates at scale and is not compensated by others' frugality,
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potentially leading to national impoverishment.
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## Economic Domain
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Regulation
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---
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--- ENTITY: natural progress of improvement ---
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# Natural Progress of Improvement
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## Definition
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The inherent tendency of societies to accumulate capital and improve through
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individual efforts to better their condition, protected by law and allowed by
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liberty. This principle frequently restores health to the economic
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constitution despite government extravagance and administrative errors.
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## Source Chapter
|
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|
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Book II, Chapter 3
|
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## Context
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Smith's optimistic conclusion that individual self-interest and frugality
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generally overcome government interference, allowing England's progress toward
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opulence despite public prodigality.
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## Economic Domain
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General Theory
|
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|
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---
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--- ENTITY: modes of expense affecting public opulence ---
|
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# Modes of Expense Affecting Public Opulence
|
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## Definition
|
||||
|
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The distinction between spending revenue on immediately consumable items
|
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versus durable commodities, where the latter contributes more to public
|
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opulence by providing useful goods to inferior ranks, encouraging frugality,
|
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and maintaining more productive hands than extravagant hospitality.
|
||||
|
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## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith's final analysis showing how different spending patterns affect
|
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national wealth, arguing that investment in durable goods creates more
|
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lasting economic benefits than consumption of perishable items.
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## Economic Domain
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Consumption
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---
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File diff suppressed because it is too large
Load Diff
@@ -0,0 +1,28 @@
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
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|
||||
# Capital Accumulation
|
||||
|
||||
## Definition
|
||||
|
||||
The process by which savings from revenue are added to capital stock, enabling
|
||||
the employment of additional productive labour. Capital grows through
|
||||
parsimony when individuals save part of their revenue and either employ it
|
||||
themselves in maintaining productive hands or lend it to others, creating a
|
||||
perpetual fund for maintaining productive labour across time.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
The chapter's primary focus, explaining how individual saving behavior
|
||||
accumulates into national capital growth. Smith argues that parsimony, not
|
||||
industry, is the immediate cause of capital increase, and that this process
|
||||
determines whether a nation tends toward industry or idleness.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Accumulation
|
||||
|
||||
---
|
||||
@@ -0,0 +1,27 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Encroachment Upon Capital
|
||||
|
||||
## Definition
|
||||
|
||||
The process by which individuals who spend beyond their income consume their
|
||||
capital stock, perverting funds consecrated to productive employment for
|
||||
maintaining unproductive labour. This diminishes the quantity of labour that
|
||||
adds value to subjects and consequently reduces the real wealth and revenue
|
||||
of the country's inhabitants.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith describes how prodigality leads to capital consumption, comparing it to
|
||||
perverting revenues of pious foundations to profane purposes, and showing how
|
||||
this behavior impoverishes both the individual and the country.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Accumulation
|
||||
|
||||
---
|
||||
@@ -0,0 +1,26 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Exportation of Gold and Silver as Effect of Declension
|
||||
|
||||
## Definition
|
||||
|
||||
The consequence rather than cause of economic decline, where diminishing
|
||||
annual produce leads to reduced domestic circulation of money, forcing its
|
||||
exportation to purchase consumable goods abroad. This exportation continues
|
||||
for some time to support consumption beyond the value of domestic produce.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith refutes the mercantilist view that gold and silver export causes
|
||||
economic decline, arguing instead that it is the effect of declining
|
||||
production and can even temporarily alleviate the misery of declension.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Exchange
|
||||
|
||||
---
|
||||
@@ -0,0 +1,30 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Frugality Versus Prodigality
|
||||
|
||||
# Frugality Versus Prodigality
|
||||
|
||||
## Definition
|
||||
|
||||
The contrasting principles governing individual and public expenditure that
|
||||
determine capital accumulation. Frugality increases public capital by saving
|
||||
revenue for productive employment, while prodigality diminishes it by
|
||||
consuming capital through excessive expenditure on unproductive labour and
|
||||
consumption.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith presents this as the fundamental economic choice affecting national
|
||||
wealth, arguing that individual frugality accumulates capital while
|
||||
prodigality destroys it, with public prodigality being particularly harmful
|
||||
when it employs revenue in maintaining unproductive hands.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Accumulation
|
||||
|
||||
---
|
||||
@@ -0,0 +1,27 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Funds for Maintaining Productive Labour
|
||||
|
||||
## Definition
|
||||
|
||||
The capital and revenue sources that employ productive hands whose labour
|
||||
adds value to materials. These funds are much greater in rich countries and
|
||||
bear a much greater proportion to those likely to be employed in maintaining
|
||||
idleness, determining the general character of inhabitants as industrious or
|
||||
idle.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith argues that the proportion between these funds and those for maintaining
|
||||
unproductive hands determines whether a country tends toward industry or
|
||||
idleness, with rich countries having larger proportions of productive labour.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Production
|
||||
|
||||
---
|
||||
@@ -0,0 +1,28 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Funds for Maintaining Unproductive Hands
|
||||
|
||||
## Definition
|
||||
|
||||
Capital and revenue sources that employ unproductive labourers and those who
|
||||
do not labour at all, including servants, soldiers, churchmen, lawyers,
|
||||
physicians, and entertainers. These funds tend to have predilection for
|
||||
unproductive labour, especially among the wealthy, affecting the overall
|
||||
productive capacity of society.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith contrasts these funds with those for productive labour, noting that
|
||||
their proportion determines whether a society tends toward industry or
|
||||
idleness, and that rich countries often maintain larger proportions of
|
||||
unproductive hands.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Production
|
||||
|
||||
---
|
||||
@@ -0,0 +1,27 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Increase of Money as Effect of Prosperity
|
||||
|
||||
## Definition
|
||||
|
||||
The natural consequence of economic growth where increased annual produce
|
||||
requires greater money circulation. The increased produce naturally employs
|
||||
itself in purchasing additional gold and silver necessary for circulating the
|
||||
rest, making monetary increase the effect rather than cause of public
|
||||
prosperity.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith's complementary argument to the previous entity, showing that monetary
|
||||
growth follows rather than leads economic development, refuting mercantilist
|
||||
concerns about money scarcity.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Exchange
|
||||
|
||||
---
|
||||
@@ -0,0 +1,26 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# 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
|
||||
|
||||
---
|
||||
@@ -0,0 +1,26 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Natural Progress of Improvement
|
||||
|
||||
## Definition
|
||||
|
||||
The inherent tendency of societies to accumulate capital and improve through
|
||||
individual efforts to better their condition, protected by law and allowed by
|
||||
liberty. This principle frequently restores health to the economic
|
||||
constitution despite government extravagance and administrative errors.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith's optimistic conclusion that individual self-interest and frugality
|
||||
generally overcome government interference, allowing England's progress toward
|
||||
opulence despite public prodigality.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
General Theory
|
||||
|
||||
---
|
||||
@@ -0,0 +1,29 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Perpetual Fund for Maintenance of Labour
|
||||
|
||||
# Perpetual Fund for Maintenance of Labour
|
||||
|
||||
## Definition
|
||||
|
||||
The accumulated capital created through individual saving that provides
|
||||
continuous employment for productive labour across all future time periods.
|
||||
Like a founder of a public work-house, a frugal person establishes a fund
|
||||
that, though not legally protected, is guarded by the evident interest of all
|
||||
who may ever possess any share of it.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith uses this concept to show how individual saving creates lasting economic
|
||||
benefits beyond the immediate year, establishing a permanent capacity for
|
||||
productive employment that characterizes wealthy nations.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Accumulation
|
||||
|
||||
---
|
||||
@@ -0,0 +1,29 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Private Misconduct Versus Public Prodigality
|
||||
|
||||
# Private Misconduct Versus Public Prodigality
|
||||
|
||||
## Definition
|
||||
|
||||
The distinction between individual economic errors and government
|
||||
extravagance as causes of reduced productive funds. While private misconduct
|
||||
rarely affects great nations due to compensation by others' good conduct,
|
||||
public prodigality employing revenue in maintaining unproductive hands can
|
||||
significantly diminish funds for productive labour.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith argues that public prodigality is more dangerous than private misconduct
|
||||
because it operates at scale and is not compensated by others' frugality,
|
||||
potentially leading to national impoverishment.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Regulation
|
||||
|
||||
---
|
||||
@@ -0,0 +1,31 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Productive and Unproductive Labour
|
||||
|
||||
## Definition
|
||||
|
||||
A fundamental classification of economic activity distinguishing labour that
|
||||
adds value to materials through transformation into vendible commodities from
|
||||
labour that provides services without creating lasting value. Productive labour
|
||||
fixes and realizes itself in particular subjects or commodities that endure
|
||||
after the labour is past and can be stored, exchanged, or employed again,
|
||||
while unproductive labour perishes in the very instant of performance without
|
||||
leaving any vendible commodity or value that can be stored or exchanged.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
The central analytical framework of this chapter, introduced to explain how
|
||||
different types of labour affect capital accumulation and economic growth.
|
||||
Smith uses this distinction to show why manufacturers grow rich while those
|
||||
maintaining unproductive servants grow poor, and how this affects the overall
|
||||
productive capacity of a nation.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Production
|
||||
|
||||
---
|
||||
@@ -0,0 +1,27 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Proportion Between Productive and Unproductive Hands
|
||||
|
||||
## Definition
|
||||
|
||||
The ratio determining the relative numbers of productive labourers who add
|
||||
value to materials versus unproductive labourers who provide services without
|
||||
creating vendible commodities. This proportion depends on the relative size
|
||||
of funds for maintaining productive versus unproductive hands, and determines
|
||||
whether a country tends toward industry or idleness.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
The central analytical relationship in the chapter, showing how the division
|
||||
of annual produce between capital replacement and revenue affects the overall
|
||||
productive capacity and economic character of a nation.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
General Theory
|
||||
|
||||
---
|
||||
@@ -0,0 +1,27 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Revenue Constituting Profit and Rent
|
||||
|
||||
## Definition
|
||||
|
||||
That portion of annual produce which forms revenue either as profit of stock
|
||||
or rent of land. This revenue may maintain either productive or unproductive
|
||||
hands indifferently, unlike capital replacement revenue which maintains only
|
||||
productive labour. It represents the surplus after capital renewal.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
The second major division of annual produce, distinguished from capital
|
||||
replacement revenue. Smith notes that owners of this revenue often show
|
||||
predilection for maintaining unproductive hands, affecting the overall
|
||||
productive capacity of society.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Distribution
|
||||
|
||||
---
|
||||
@@ -0,0 +1,27 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# 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
|
||||
|
||||
---
|
||||
@@ -0,0 +1,28 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
|
||||
|
||||
# Spare Revenue
|
||||
|
||||
## Definition
|
||||
|
||||
That portion of revenue which remains after necessary subsistence is met and
|
||||
which may be employed in maintaining either productive or unproductive hands.
|
||||
Productive labourers have little spare revenue, while landlords and merchants
|
||||
have most to spare, giving them greater influence over the proportion of
|
||||
productive versus unproductive labour in society.
|
||||
|
||||
## Source Chapter
|
||||
|
||||
Book II, Chapter 3
|
||||
|
||||
## Context
|
||||
|
||||
Smith explains how different social classes use their revenue, noting that
|
||||
spare revenue is the key determinant of whether additional labour will be
|
||||
productive or unproductive, thus affecting capital accumulation and economic
|
||||
growth.
|
||||
|
||||
## Economic Domain
|
||||
|
||||
Distribution
|
||||
|
||||
---
|
||||
Reference in New Issue
Block a user