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
increasing quantity of food, or with the growing improvement and
cultivation of the lands; and as the nature of their business admits of
the utmost subdivisions of labour, the quantity of materials which they
can work up, increases in a much greater proportion than their numbers.
Hence arises a demand for every sort of material which human invention can
employ, either usefully or ornamentally, in building, dress, equipage, or
household furniture; for the fossils and minerals contained in the bowels
of the earth, the precious metals, and the precious stones.
Food is, in this manner, not only the original source of rent, but every
other part of the produce of land which afterwards affords rent, derives
that part of its value from the improvement of the powers of labour in
producing food, by means of the improvement and cultivation of land.
Those other parts of the produce of land, however, which afterwards afford
rent, do not afford it always. Even in improved and cultivated countries,
the demand for them is not always such as to afford a greater price than
what is sufficient to pay the labour, and replace, together with its
ordinary profits, the stock which must be employed in bringing them to
market. Whether it is or is not such, depends upon different
circumstances.
Whether a coal mine, for example, can afford any rent, depends partly upon
its fertility, and partly upon its situation.
A mine of any kind may be said to be either fertile or barren, according
as the quantity of mineral which can be brought from it by a certain
quantity of labour, is greater or less than what can be brought by an
equal quantity from the greater part of other mines of the same kind.
Some coal mines, advantageously situated, cannot be wrought on account of
their barrenness. The produce does not pay the expense. They can afford
neither profit nor rent.
There are some, of which the produce is barely sufficient to pay the
labour, and replace, together with its ordinary profits, the stock
employed in working them. They afford some profit to the undertaker of the
work, but no rent to the landlord. They can be wrought advantageously by
nobody but the landlord, who, being himself the undertaker of the work,
gets the ordinary profit of the capital which he employs in it. Many coal
mines in Scotland are wrought in this manner, and can be wrought in no
other. The landlord will allow nobody else to work them without paying
some rent, and nobody can afford to pay any.
Public-domain text, read in full here on John Shaqi.
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