Principium Volume II, Book 8, Quote 857,858, and 860

857. (8-5-2010) The proportion between capital and revenue, therefore, seems everywhere to regulate the proportion between industry and idleness. Wherever capital predominates, industry prevails: wherever revenue, idleness. Every increase or diminution of capital, therefore, naturally tends to increase or diminish the real quantity of industry, the number of productive hands, and consequently the exchangeable value of the annual produce of the land and labour [sic] of the country, the real wealth and revenue of all its inhabitants.

- Adam Smith – The Wealth of Nations, 1776

858. (8-9-2010) (It is necessary to understand that capital means: 1.) Assets available for use in the production of further assets 2.) Wealth in the form of money or property owned by a person of business and human resources of economic value – {Colordict – English Wordnet dictionary app}, and that revenue means: 1.) The entire amount of income before any deductions are made – {Colordict – English Wordnet dictionary}. Which can be split two ways: 1.) To replenish capital for further asset production or 2.) To spend on unproductive labour, services, entertainment, luxury, or in other expenses unrelated to the productive capacity of assets. Revenue is also defined as government income due to taxation – {Colordict – English Wordnet Dictionary}, or in other words another unproductive use of produce.)ATJ

- Andrew T. Jackson

860. (8-9-2010) Whatever a person saves from his revenue he adds to his capital, and either employs it himself in maintaining an additional number of productive hands, or enables some other person to do so, by lending it to him for an interest, that is, for a share of the profits. As the capital of an individual can be increased only by what he saves from his annual revenue or his annual gains, so the capital of a society, which is the same with that of all the individuals who compose it, can be increased only in the same manner.

- Adam Smith – The Wealth of Nations, 1776

1 view0 comments

Recent Posts

See All

Principium Volume III, Book 13, Quote 1331 and 1334

1331. (3-3-2011) (The book “On Power” is going to be much more cerebral and feel abstract, but lend your mental faculties to it and bits of truth begin to come. Like the leaks in a dam, dike, or levy,