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
It seldom happens that the person who tills the ground has wherewithal to
maintain himself till he reaps the harvest. His maintenance is generally
advanced to him from the stock of a master, the farmer who employs him,
and who would have no interest to employ him, unless he was to share in
the produce of his labour, or unless his stock was to be replaced to him
with a profit. This profit makes a second deduction from the produce of
the labour which is employed upon land.
The produce of almost all other labour is liable to the like deduction of
profit. In all arts and manufactures, the greater part of the workmen
stand in need of a master, to advance them the materials of their work,
and their wages and maintenance, till it be completed. He shares in the
produce of their labour, or in the value which it adds to the materials
upon which it is bestowed; and in this share consists his profit.
It sometimes happens, indeed, that a single independent workman has stock
sufficient both to purchase the materials of his work, and to maintain
himself till it be completed. He is both master and workman, and enjoys
the whole produce of his own labour, or the whole value which it adds to
the materials upon which it is bestowed. It includes what are usually two
distinct revenues, belonging to two distinct persons, the profits of
stock, and the wages of labour.
Such cases, however, are not very frequent; and in every part of Europe
twenty workmen serve under a master for one that is independent, and the
wages of labour are everywhere understood to be, what they usually are,
when the labourer is one person, and the owner of the stock which employs
him another.
What are the common wages of labour, depends everywhere upon the contract
usually made between those two parties, whose interests are by no means
the same. The workmen desire to get as much, the masters to give as
little, as possible. The former are disposed to combine in order to raise,
the latter in order to lower, the wages of labour.
Public-domain text, read in full here on John Shaqi.
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