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# Sovereign Parsimony Principle

## Definition

The economic principle that government frugality and efficient use of public resources contribute to national wealth by preserving capital for productive investment rather than wasteful expenditure. This principle underlies Smith's critique of unnecessary public expenses like gratuitous coinage.

## Source Chapter

Book IV, Chapter 6

## Context

Smith applies this principle to argue against unnecessary public expenses, including the gratuitous coinage of money. He contends that government frugality preserves resources for productive use and contributes to overall economic efficiency.

## Economic Domain

Regulation

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