28 lines
812 B
Markdown
28 lines
812 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
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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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