867 B
867 B
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