802 B
802 B
Revenue Versus Capital Effects
Definition
The distinction between policies that affect immediate economic returns (revenue) and those that influence long-term wealth accumulation (capital). Smith argues that protectionist measures may provide short-term benefits to certain groups while reducing overall economic growth.
Source Chapter
Book IV, Chapter 2
Context
Smith examines how trade restrictions affect both immediate economic returns and long-term capital accumulation, arguing that while such measures may benefit specific industries in the short term, they typically reduce overall economic growth and prosperity.
Economic Domain
Accumulation