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
Rent, it is to be observed, therefore, enters into the composition of the
price of commodities in a different way from wages and profit. High or low
wages and profit are the causes of high or low price; high or low rent is
the effect of it. It is because high or low wages and profit must be paid,
in order to bring a particular commodity to market, that its price is high
or low. But it is because its price is high or low, a great deal more, or
very little more, or no more, than what is sufficient to pay those wages
and profit, that it affords a high rent, or a low rent, or no rent at all.
The particular consideration, first, of those parts of the produce of land
which always afford some rent; secondly, of those which sometimes may and
sometimes may not afford rent; and, thirdly, of the variations which, in
the different periods of improvement, naturally take place in the relative
value of those two different sorts of rude produce, when compared both
with one another and with manufactured commodities, will divide this
chapter into three parts.
PART I.—Of the Produce of Land which always affords Rent.
As men, like all other animals, naturally multiply in proportion to the
means of their subsistence, food is always more or less in demand. It can
always purchase or command a greater or smaller quantity of labour, and
somebody can always be found who is willing to do something in order to
obtain it. The quantity of labour, indeed, which it can purchase, is not
always equal to what it could maintain, if managed in the most economical
manner, on account of the high wages which are sometimes given to labour;
but it can always purchase such a quantity of labour as it can maintain,
according to the rate at which that sort of labour is commonly maintained
in the neighbourhood.
But land, in almost any situation, produces a greater quantity of food
than what is sufficient to maintain all the labour necessary for bringing
it to market, in the most liberal way in which that labour is ever
maintained. The surplus, too, is always more than sufficient to replace
the stock which employed that labour, together with its profits.
Something, therefore, always remains for a rent to the landlord.
Public-domain text, read in full here on John Shaqi.
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