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
Had this state continued, the wages of labour would have augmented with
all those improvements in its productive powers, to which the division of
labour gives occasion. All things would gradually have become cheaper.
They would have been produced by a smaller quantity of labour; and as the
commodities produced by equal quantities of labour would naturally in this
state of things be exchanged for one another, they would have been
purchased likewise with the produce of a smaller quantity.
But though all things would have become cheaper in reality, in appearance
many things might have become dearer, than before, or have been exchanged
for a greater quantity of other goods. Let us suppose, for example, that
in the greater part of employments the productive powers of labour had
been improved to tenfold, or that a day’s labour could produce ten times
the quantity of work which it had done originally; but that in a
particular employment they had been improved only to double, or that a
day’s labour could produce only twice the quantity of work which it had
done before. In exchanging the produce of a day’s labour in the greater
part of employments for that of a day’s labour in this particular one, ten
times the original quantity of work in them would purchase only twice the
original quantity in it. Any particular quantity in it, therefore, a pound
weight, for example, would appear to be five times dearer than before. In
reality, however, it would be twice as cheap. Though it required five
times the quantity of other goods to purchase it, it would require only
half the quantity of labour either to purchase or to produce it. The
acquisition, therefore, would be twice as easy as before.
But this original state of things, in which the labourer enjoyed the whole
produce of his own labour, could not last beyond the first introduction of
the appropriation of land and the accumulation of stock. It was at an end,
therefore, long before the most considerable improvements were made in the
productive powers of labour; and it would be to no purpose to trace
further what might have been its effects upon the recompence or wages of
labour.
As soon as land becomes private property, the landlord demands a share of
almost all the produce which the labourer can either raise or collect from
it. His rent makes the first deduction from the produce of the labour
which is employed upon land.
Public-domain text, read in full here on John Shaqi.
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