Principium Volume II, Book 8, Quote 871, 874, and 877

871. (8-13-2010) The Stock which is lent at interest is always considered as a capital by the lender. He expects that in due time it is to be restored to him, and that in the meantime the borrower is to pay him a certain annual rent for the use of it. The borrower may use it either as a capital, or as a stock reserved for immediate consumption. If he uses it as a capital, he employs it in the maintenance of productive labourers [sic], who reproduce the value with a profit. He can, in this case, both restore the capital and pay the interest without alienating or encroaching upon any other source of revenue. If he uses it as a stock reserved for immediate consumption, he acts the part of a prodigal, and dissipates in the maintenance of the idle what was destined for the support of the industrious. He can, in this case, neither restore the capital nor pay the interest without either alienating or encroaching upon some other source of revenue, such as the property or the rent of land.

- Adam Smith – The Wealth of Nations, 1776


874. (8-20-2010) The capital of all the individuals of a nation has its limits in the same manner as that of a single individual, and is capable of executing only certain purposes. The capital of all the individuals of a nation is increased in the same manner as that of a single individual by their continually accumulating and adding to it whatever they save out of the revenue. It is likely to increase the fastest, therefore, when it is employed in the way that affords the greatest revenue to all the inhabitants of the country, as they will thus be enabled to make the greatest savings. But the revenue of all the inhabitants of the country is necessarily in proportion to the value of the annual produce of their land and labour [sic].

- Adam Smith – The Wealth of Nations, 1776


877. (8-21-2010) When the capital stock of any country is increased to such a degree that it cannot be all employed in supplying the consumption and supporting the productive labour [sic] of that particular country, the surplus part of it naturally disgorges itself into the carrying trade, and is employed in performing the same offices to other countries. The carrying trade is the natural effect and symptom of great national wealth; but it does not seem to be the natural cause of it.

- Adam Smith – The Wealth of Nations, 1776

2 views0 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,

 

702-306-3822

©2020 by BrightMind. Proudly created with Wix.com

  • Facebook
  • Twitter