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Explain Smith's views on why the rate of profit will fall as capitalism grows older.

User StuperUser
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The manufacturer who accumulates stock needs more laborers (since labor-saving technology has no place in Smith's scheme), and, in attempting to hire them, he bids up their wages above their “natural” price. Consequently, his profits begin to fall, and the process of accumulation is in danger of ceasing.

User Piyush N
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