31 lines
882 B
Markdown
31 lines
882 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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# 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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