Adam Smith's Wealth of Nations: Episode 5--The Text of Book II
About this episode
This episode explores Book 2 of Adam Smith's Wealth of Nations, focusing on the division of stock and capital accumulation's role in economic growth.
Send us Fan Mail This episode explores Book 2 of Adam Smith's Wealth of Nations, focusing on his revolutionary concept of the "division of stock" and how capital accumulation drives economic growth. • Smith distinguishes between fixed capital (machines, buildings, land improvements) and circulating capital (money, goods in transit) • Money is described as "the great wheel of circulation" – necessary but not productive in itself • Banking allows society to economize on expensive metallic curr...
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Host: Michael Munger
Mentioned in this episode
Books & works: Wealth of Nations
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