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
But though labour be the real measure of the exchangeable value of all
commodities, it is not that by which their value is commonly estimated. It
is often difficult to ascertain the proportion between two different
quantities of labour. The time spent in two different sorts of work will
not always alone determine this proportion. The different degrees of
hardship endured, and of ingenuity exercised, must likewise be taken into
account. There may be more labour in an hour’s hard work, than in two
hours easy business; or in an hour’s application to a trade which it cost
ten years labour to learn, than in a month’s industry, at an ordinary and
obvious employment. But it is not easy to find any accurate measure either
of hardship or ingenuity. In exchanging, indeed, the different productions
of different sorts of labour for one another, some allowance is commonly
made for both. It is adjusted, however, not by any accurate measure, but
by the higgling and bargaining of the market, according to that sort of
rough equality which, though not exact, is sufficient for carrying on the
business of common life.
Every commodity, besides, is more frequently exchanged for, and thereby
compared with, other commodities, than with labour. It is more natural,
therefore, to estimate its exchangeable value by the quantity of some
other commodity, than by that of the labour which it can produce. The
greater part of people, too, understand better what is meant by a quantity
of a particular commodity, than by a quantity of labour. The one is a
plain palpable object; the other an abstract notion, which though it can
be made sufficiently intelligible, is not altogether so natural and
obvious.
Public-domain text, read in full here on John Shaqi.
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