Send us a text 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 curren...
All content for The Answer Is Transaction Costs is the property of Michael Munger and is served directly from their servers
with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.
Send us a text 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 curren...
Adam Smith's Wealth of Nations: Episode 4--Capital and Book II: Introduction
The Answer Is Transaction Costs
54 minutes
1 week ago
Adam Smith's Wealth of Nations: Episode 4--Capital and Book II: Introduction
Send us a text Book Two of Adam Smith's "The Wealth of Nations" provides the conceptual foundation for understanding how commercial society sustains growth through capital accumulation and the employment of stock. Smith challenges common misconceptions about wealth creation and offers profound insights on the role of capital in economic development. • Capital is not capitalism – Smith wrote before "capitalism" was invented, using the term "stock" to describe accumulated resources • Division ...
The Answer Is Transaction Costs
Send us a text 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 curren...
