22 lines
1.0 KiB
Markdown
22 lines
1.0 KiB
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-04 -->
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# Natural Balance of Employments
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## Definition
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The equilibrium that spontaneously emerges among different economic activities and employments based on their relative profitability, resource requirements, and market demands. This balance represents the optimal distribution of capital and labour across various sectors that would occur naturally without artificial interventions, taxes, or regulations that distort market signals.
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## Source Chapter
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Book IV, Chapter 4
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## Context
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The chapter emphasizes that drawbacks are intended to preserve rather than overturn this natural balance. Smith argues that by preventing duties from driving capital to other employments, drawbacks maintain the equilibrium that would naturally establish itself among various economic activities, ensuring that capital flows to its most productive uses based on genuine market conditions rather than tax-induced distortions.
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## Economic Domain
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Distribution
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---
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