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
Such are potatoes and maize, or what is called Indian
corn, the two most important improvements which the agriculture of Europe,
perhaps, which Europe itself, has received from the great extension of its
commerce and navigation. Many sorts of vegetable food, besides, which in
the rude state of agriculture are confined to the kitchen-garden, and
raised only by the spade, come, in its improved state, to be introduced
into common fields, and to be raised by the plough; such as turnips,
carrots, cabbages, etc. If, in the progress of improvement, therefore, the
real price of one species of food necessarily rises, that of another as
necessarily falls; and it becomes a matter of more nicety to judge how far
the rise in the one may be compensated by the fall in the other. When the
real price of butcher’s meat has once got to its height (which, with
regard to every sort, except perhaps that of hogs flesh, it seems to have
done through a great part of England more than a century ago), any rise
which can afterwards happen in that of any other sort of animal food,
cannot much affect the circumstances of the inferior ranks of people. The
circumstances of the poor, through a great part of England, cannot surely
be so much distressed by any rise in the price of poultry, fish,
wild-fowl, or venison, as they must be relieved by the fall in that of
potatoes.
In the present season of scarcity, the high price of corn no doubt
distresses the poor. But in times of moderate plenty, when corn is at its
ordinary or average price, the natural rise in the price of any other sort
of rude produce cannot much affect them. They suffer more, perhaps, by the
artificial rise which has been occasioned by taxes in the price of some
manufactured commodities, as of salt, soap, leather, candles, malt, beer,
ale, etc.
_Effects of the Progress of Improvement upon the real Price of
Manufactures._
It is the natural effect of improvement, however, to diminish gradually
the real price of almost all manufactures. That of the manufacturing
workmanship diminishes, perhaps, in all of them without exception. In
consequence of better machinery, of greater dexterity, and of a more
proper division and distribution of work, all of which are the natural
effects of improvement, a much smaller quantity of labour becomes
requisite for executing any particular piece of work; and though, in
consequence of the flourishing circumstances of the society, the real
price of labour should rise very considerably, yet the great diminution of
the quantity will generally much more than compensate the greatest rise
which can happen in the price.
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