22 lines
733 B
Markdown
22 lines
733 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-03 -->
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# Capital Decay Through Excessive Consumption
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## Definition
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The process by which a nation's productive resources are diminished when annual consumption exceeds annual production, forcing society to consume its capital stock to maintain current living standards, leading to long-term economic decline.
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## Source Chapter
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Book IV, Chapter 3
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## Context
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Smith warns that when expenses exceed revenue, capital must necessarily decay, and this principle applies to nations as well as individuals, making sustainable consumption levels essential for long-term prosperity.
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## Economic Domain
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Accumulation
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---
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