791 B
791 B
Colonial Economic System Balance
Definition
The equilibrium between different economic forces in colonies, including production and consumption, investment and saving, and domestic and foreign trade. Better balance through market mechanisms promotes more sustainable and efficient economic development.
Source Chapter
Book IV, Chapter 7
Context
Smith argues that market mechanisms naturally promote economic balance, while monopoly policies often create artificial imbalances through market distortions and controlled production. He contends that more open arrangements would achieve better economic balance.
Economic Domain
General Theory