842 B
842 B
Sovereign Parsimony
Definition
The practice of rulers accumulating treasure through frugality and saving rather than spending, traditionally seen as a prudent way to prepare for emergencies and maintain national security. Smith notes this practice has largely disappeared in modern commercial nations.
Source Chapter
Book IV, Chapter 1
Context
Smith observes that European princes no longer accumulate treasure as their predecessors did, attributing this change to the different economic conditions of commercial societies. He suggests that modern governments can obtain resources through other means when needed, making large hoards of treasure less necessary.
Economic Domain
Accumulation