Elements of Political Economy

Gain. Longer Ways the more profitable. But within Limits. Capital in less abundance than other Wealth. Hence Interest. Embodied in distinct Classes, Lenders, and Employers. Borrowed Capital and Cost. Renewal of Capital probable. Conditions of the Renewal. What is this capital, and what is its cost ? What outlay is involved in the first formation, and then in the full utilising of the capital itself? The definition of capital as wealth that is used to produce more wealth, has the advantage of simplicity ; but, like all such simple definitions, suffers from the existence of apparent exceptions on the border line. The exceptions usually spring up on the change of purpose on the part of the possessor of wealth ; his wealth maybe capital or not as he chooses, for "capital" is "a notion of the second intention." In loose popular discourse, capital means any source of revenue, public or private, even a good name or a persuasive tongue. Probably the commonest idea of all is that capital is money, and all money is capital, or at least that all wealth is capital. The most fruitful Definition.?If, however, we assume that the use of two different terms both by vulgar and by learned, must point to some real distinction, not always respected by the learned, and not often discerned by the vulgar, we should do well to seek for the most fruitful and useful form of the distinction, and try to hold it clearly. Wealth used to produce more wealth is such, if we take the word...