---
entity_slug: natural_course_of_capital_employment
evaluator: null
evaluated_at: '2026-02-23T05:58:12.395883'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly captures a distinct economic mechanism - the tendency
    of capital to flow to productive uses through market forces rather than government
    direction. It avoids circularity and identifies specific causal elements (market
    forces, comparative advantage) that drive this allocation process.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's text, particularly his famous
    discussion of the "invisible hand" and his arguments against mercantile policies
    that attempt to direct capital flows. Book IV, Chapter 2 specifically addresses
    how individuals pursuing self-interest often achieve better capital allocation
    than government planners.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Accumulation" domain is perfectly appropriate since this concept
    deals with how capital (accumulated wealth) gets allocated and employed in the
    economy. This is a core mechanism within Smith's theory of capital accumulation
    and economic growth.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it describes how the economic system adapts to environmental conditions through
    market signals, and potentially S2 (coordination) as it explains how individual
    capital decisions coordinate without central planning. The concept illuminates
    systemic self-organization mechanisms.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by identifying a key
    mechanism in Smith's economic theory - how decentralized market processes can
    achieve efficient resource allocation. It explains the structural relationship
    between individual self-interest and systemic efficiency, which is fundamental
    to understanding Smith's broader argument.
---

# Evaluation: Natural Course Of Capital Employment

## definition_precision — 4.0 / 5.0

The definition clearly captures a distinct economic mechanism - the tendency of capital to flow to productive uses through market forces rather than government direction. It avoids circularity and identifies specific causal elements (market forces, comparative advantage) that drive this allocation process.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's text, particularly his famous discussion of the "invisible hand" and his arguments against mercantile policies that attempt to direct capital flows. Book IV, Chapter 2 specifically addresses how individuals pursuing self-interest often achieve better capital allocation than government planners.

## domain_placement — 5.0 / 5.0

The "Accumulation" domain is perfectly appropriate since this concept deals with how capital (accumulated wealth) gets allocated and employed in the economy. This is a core mechanism within Smith's theory of capital accumulation and economic growth.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it describes how the economic system adapts to environmental conditions through market signals, and potentially S2 (coordination) as it explains how individual capital decisions coordinate without central planning. The concept illuminates systemic self-organization mechanisms.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by identifying a key mechanism in Smith's economic theory - how decentralized market processes can achieve efficient resource allocation. It explains the structural relationship between individual self-interest and systemic efficiency, which is fundamental to understanding Smith's broader argument.
