Theannualproduceofthelandandlabourofanynationcanbeincreasedinitsvaluebynoothermeansbutbyincreasingeitherthenumberofitsproductivelabourers，ortheproductivepowersofthoselabourerswhohadbeforebeenemployed。Thenumberofitsproductivelabourers，itisevident，canneverbemuchincreased，butinconsequenceofanincreaseofcapital，orofthefundsdestinedformaintainingthem。Theproductivepowersofthesamenumberoflabourerscannotbeincreased，butinconsequenceeitherofsomeadditionandimprovementtothosemachinesandinstrumentswhichfacilitateandabridgelabour;orofamoreproperdivisionanddistributionofemployment。Ineithercaseanadditionalcapitalisalmostalwaysrequired。Itisbymeansofanadditionalcapitalonlythattheundertakerofanyworkcaneitherprovidehisworkmenwithbettermachineryormakeamoreproperdistributionofemploymentamongthem。Whentheworktobedoneconsistsofanumberofparts，tokeepeverymanconstantlyemployedinonewayrequiresamuchgreatercapitalthanwhereeverymanisoccasionallyemployedineverydifferentpartofthework。Whenwecompare，therefore，thestateofanationattwodifferentperiods，andfind，thattheannualproduceofitslandandlabourisevidentlygreateratthelatterthanattheformer，thatitslandsarebettercultivated，itsmanufacturesmorenumerousandmoreflourishing，anditstrademoreextensive，wemaybeassuredthatitscapitalmusthaveincreasedduringtheintervalbetweenthosetwoperiods，andthatmoremusthavebeenaddedtoitbythegoodconductofsomethanhadbeentakenfromiteitherbytheprivatemisconductofothersorbythepublicextravaganceofgovernment。Butweshallfindthistohavebeenthecaseofalmostallnations，inalltolerablyquietandpeaceabletimes，evenofthosewhohavenotenjoyedthemostprudentandparsimoniousgovernments。Toformarightjudgmentofit，indeed，wemustcomparethestateofthecountryatperiodssomewhatdistantfromoneanother。Theprogressisfrequentlysogradualthat，atnearperiods，theimprovementisnotonlynotsensible，butfromthedeclensioneitherofcertainbranchesofindustry，orofcertaindistrictsofthecountry，thingswhichsometimeshappenthoughthecountryingeneralbeingreatprosperity，therefrequentlyarisesasuspicionthattherichesandindustryofthewholearedecaying。
TheannualproduceofthelandandlabourofEngland，forexample，iscertainlymuchgreaterthanitwas，alittlemorethanacenturyago，attherestorationofCharlesII。Though，atpresent，fewpeople，Ibelieve，doubtofthis，yetduringthisperiod，fiveyearshaveseldompassedawayinwhichsomebookorpamphlethasnotbeenpublished，written，too，withsuchabilitiesastogainsomeauthoritywiththepublic，andpretendingtodemonstratethatthewealthofthenationwasfastdeclining，thatthecountrywasdepopulated，agricultureneglected，manufacturesdecaying，andtradeundone。Norhavethesepublicationsbeenallpartypamphlets，thewretchedoffspringoffalsehoodandvenality。Manyofthemhavebeenwrittenbyverycandidandveryintelligentpeople，whowrotenothingbutwhattheybelieved，andfornootherreasonbutbecausetheybelievedit。
TheannualproduceofthelandandlabourofEngland，again，wascertainlymuchgreaterattheRestoration，thanwecansupposeittohavebeenaboutanhundredyearsbefore，attheaccessionofElizabeth。Atthisperiod，too，wehaveallreasontobelieve，thecountrywasmuchmoreadvancedinimprovementthanithadbeenaboutacenturybefore，towardsthecloseofthedissensionsbetweenthehousesofYorkandLancaster。Eventhenitwas，probably，inabetterconditionthanithadbeenattheNormanConquest，andattheNormanConquestthanduringtheconfusionoftheSaxonHeptarchy。Evenatthisearlyperiod，itwascertainlyamoreimprovedcountrythanattheinvasionofJuliusCaesar，whenitsinhabitantswerenearlyinthesamestatewiththesavagesinNorthAmerica。
Ineachofthoseperiods，however，therewasnotonlymuchprivateandpublicprofusion，manyexpensiveandunnecessarywars，greatperversionoftheannualproducefrommaintainingproductivetomaintainunproductivehands;butsometimes，intheconfusionofcivildiscord，suchabsolutewasteanddestructionofstock，asmightbesupposed，notonlytoretard，asitcertainlydid，thenaturalaccumulationofriches，buttohaveleftthecountry，attheendoftheperiod，poorerthanatthebeginning。Thus，inthehappiestandmostfortunateperiodofthemall，thatwhichhaspassedsincetheRestoration，howmanydisordersandmisfortuneshaveoccurred，which，couldtheyhavebeenforeseen，notonlytheimpoverishment，butthetotalruinofthecountrywouldhavebeenexpectedfromthem？ThefireandtheplagueofLondon，thetwoDutchwars，thedisordersoftheRevolution，thewarinIreland，thefourexpensiveFrenchwarsof1688，1702，1742，and1756，togetherwiththetworebellionsof1715and1745。InthecourseofthefourFrenchwars，thenationhascontractedmorethanahundredandforty—fivemillionsofdebt，overandabovealltheotherextraordinaryannualexpensewhichtheyoccasioned，sothatthewholecannotbecomputedatlessthantwohundredmillions。Sogreatashareoftheannualproduceofthelandandlabourofthecountryhas，sincetheRevolution，beenemployedupondifferentoccasionsinmaintaininganextraordinarynumberofunproductivehands。Buthadnotthosewarsgiventhisparticulardirectiontosolargeacapital，thegreaterpartofitwouldnaturallyhavebeenemployedinmaintainingproductivehands，whoselabourwouldhavereplaced，withaprofit，thewholevalueoftheirconsumption。Thevalueoftheannualproduceofthelandandlabourofthecountrywouldhavebeenconsiderablyincreasedbyiteveryyear，andeveryyear’sincreasewouldhaveaugmentedstillmorethatofthefollowingyear。Morehouseswouldhavebeenbuilt，morelandswouldhavebeenimproved，andthosewhichhadbeenimprovedbeforewouldhavebeenbettercultivated，moremanufactureswouldhavebeenestablished。andthosewhichhadbeenestablishedbeforewouldhavebeenmoreextended;andtowhatheighttherealwealthandrevenueofthecountrymight，bythistime，havebeenraised，itisnotperhapsveryeasyeventoimagine。
Butthoughtheprofusionofgovernmentmust，undoubtedly，haveretardedthenaturalprogressofEnglandtowardswealthandimprovement，ithasnotbeenabletostopit。Theannualproduceofitslandandlabouris，undoubtedly，muchgreateratpresentthanitwaseitherattheRestorationorattheRevolution。Thecapital，therefore，annuallyemployedincultivatingthisland，andinmaintainingthislabour，mustlikewisebemuchgreater。Inthemidstofalltheexactionsofgovernment，thiscapitalhasbeensilentlyandgraduallyaccumulatedbytheprivatefrugalityandgoodconductofindividuals，bytheiruniversal，continual，anduninterruptedefforttobettertheirowncondition。Itisthiseffort，protectedbylawandallowedbylibertytoexertitselfinthemannerthatismostadvantageous，whichhasmaintainedtheprogressofEnglandtowardsopulenceandimprovementinalmostallformertimes，andwhich，itistobehoped，willdosoinallfuturetimes。England，however，asithasneverbeenblessedwithaveryparsimoniousgovernment，soparsimonyhasatnotimebeenthecharacteristicalvirtueofitsinhabitants。Itisthehighestimpertinenceandpresumption，therefore，inkingsandministers，topretendtowatchovertheeconomyofprivatepeople，andtorestraintheirexpense，eitherbysumptuarylaws，orbyprohibitingtheimportationofforeignluxuries。Theyarethemselvesalways，andwithoutanyexception，thegreatestspendthriftsinthesociety。Letthemlookwellaftertheirownexpense，andtheymaysafelytrustprivatepeoplewiththeirs。Iftheirownextravagancedoesnotruinthestate，thatoftheirsubjectsneverwill。