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
The coarse manufacture probably was, in those ancient times, carried on in
England in the same manner as it always has been in countries where arts
and manufactures are in their infancy. It was probably a household
manufacture, in which every different part of the work was occasionally
performed by all the different members of almost every private family, but
so as to be their work only when they had nothing else to do, and not to
be the principal business from which any of them derived the greater part
of their subsistence. The work which is performed in this manner, it has
already been observed, comes always much cheaper to market than that which
is the principal or sole fund of the workman’s subsistence. The fine
manufacture, on the other hand, was not, in those times, carried on in
England, but in the rich and commercial country of Flanders; and it was
probably conducted then, in the same manner as now, by people who derived
the whole, or the principal part of their subsistence from it. It was,
besides, a foreign manufacture, and must have paid some duty, the ancient
custom of tonnage and poundage at least, to the king. This duty, indeed,
would not probably be very great. It was not then the policy of Europe to
restrain, by high duties, the importation of foreign manufactures, but
rather to encourage it, in order that merchants might be enabled to
supply, at as easy a rate as possible, the great men with the
conveniencies and luxuries which they wanted, and which the industry of
their own country could not afford them.
The consideration of these circumstances may, perhaps, in some measure
explain to us why, in those ancient times, the real price of the coarse
manufacture was, in proportion to that of the fine, so much lower than in
the present times.
Conclusion of the Chapter.
I shall conclude this very long chapter with observing, that every
improvement in the circumstances of the society tends, either directly or
indirectly, to raise the real rent of land to increase the real wealth of
the landlord, his power of purchasing the labour, or the produce of the
labour of other people.
The extension of improvement and cultivation tends to raise it directly.
The landlord’s share of the produce necessarily increases with the
increase of the produce.
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