853 B
853 B
Revenue Destined for Capital Replacement
Definition
That portion of annual produce which immediately replaces capital by renewing provisions, materials, and finished work withdrawn from capital. This revenue maintains only productive hands and pays wages of productive labour, forming the foundation for continued production and economic growth.
Source Chapter
Book II, Chapter 3
Context
Smith divides annual produce into two parts: one replacing capital and one constituting revenue. This portion is crucial because it determines the proportion between productive and unproductive hands in society and thus the general character of inhabitants as to industry or idleness.
Economic Domain
Accumulation