916 B
916 B
Security Preference Capital
Definition
The tendency of capital owners to prefer investments that offer greater security and control over those with higher risk, specifically favoring land improvement over manufacturing and manufacturing over foreign trade. This preference stems from the ability to directly oversee land investments and the reduced exposure to accidents and injustices compared to commercial alternatives.
Source Chapter
Book III, Chapter 1
Context
Smith identifies this security preference as the primary driver of the natural order of economic development, explaining why capital naturally flows toward agriculture before manufacturing and manufacturing before foreign trade based on relative security considerations.
Economic Domain
Accumulation