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The Wealth of Nations · Chapter

Book II: Of the Nature, Accumulation, and Employment of Stock explained

This book examines the nature, accumulation, and employment of stock, distinguishing between capital used for immediate consumption and fixed or circulating capital, and discussing how stock is accumulated and employed to generate revenue.

What happens

This book examines the nature, accumulation, and employment of stock, distinguishing between capital used for immediate consumption and fixed or circulating capital, and discussing how stock is accumulated and employed to generate revenue.

Themes in this chapter

  • Wealth and Money

    Discusses the nature of stock and its accumulation as a form of wealth.

  • Division of Labor

    Implied in the employment of stock to support specialized productive labor.

Characters to notice

  • Adam Smith

    Author and narrator of the analysis on stock.

  • The Employer

    Represents those who employ stock in productive labor.

  • A Workman

    Represents laborers whose work is supported by stock.

Key passages

  • Of the nature, accumulation, and employment of stock.

    This book explores what stock is, how it is gathered, and how it is used.

    Opening statement of the chapter's focus.