An Inquiry into the Nature and Causes of the Wealth of NationsSmith, Adam
History
An Inquiry into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
Every town draws its whole subsistence, and all the materials of its
industry, from the country. It pays for these chiefly in two ways. First,
by sending back to the country a part of those materials wrought up and
manufactured; in which case, their price is augmented by the wages of the
workmen, and the profits of their masters or immediate employers;
secondly, by sending to it a part both of the rude and manufactured
produce, either of other countries, or of distant parts of the same
country, imported into the town; in which case, too, the original price of
those goods is augmented by the wages of the carriers or sailors, and by
the profits of the merchants who employ them. In what is gained upon the
first of those branches of commerce, consists the advantage which the town
makes by its manufactures; in what is gained upon the second, the
advantage of its inland and foreign trade. The wages of the workmen, and
the profits of their different employers, make up the whole of what is
gained upon both. Whatever regulations, therefore, tend to increase those
wages and profits beyond what they otherwise: would be, tend to enable the
town to purchase, with a smaller quantity of its labour, the produce of a
greater quantity of the labour of the country. They give the traders and
artificers in the town an advantage over the landlords, farmers, and
labourers, in the country, and break down that natural equality which
would otherwise take place in the commerce which is carried on between
them. The whole annual produce of the labour of the society is annually
divided between those two different sets of people. By means of those
regulations, a greater share of it is given to the inhabitants of the town
than would otherwise fall to them, and a less to those of the country.
The price which the town really pays for the provisions and materials
annually imported into it, is the quantity of manufactures and other goods
annually exported from it. The dearer the latter are sold, the cheaper the
former are bought. The industry of the town becomes more, and that of the
country less advantageous.
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