29 lines
901 B
Markdown
29 lines
901 B
Markdown
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-03 -->
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# Capital Accumulation
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## Definition
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The process by which savings from revenue are added to capital stock, enabling
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the employment of additional productive labour. Capital grows through
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parsimony when individuals save part of their revenue and either employ it
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themselves in maintaining productive hands or lend it to others, creating a
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perpetual fund for maintaining productive labour across time.
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## Source Chapter
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Book II, Chapter 3
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## Context
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The chapter's primary focus, explaining how individual saving behavior
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accumulates into national capital growth. Smith argues that parsimony, not
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industry, is the immediate cause of capital increase, and that this process
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determines whether a nation tends toward industry or idleness.
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## Economic Domain
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Accumulation
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---
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