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
Secondly, the wages of labour do not, in Great Britain, fluctuate with the
price of provisions. These vary everywhere from year to year, frequently
from month to month. But in many places, the money price of labour remains
uniformly the same, sometimes for half a century together. If, in these
places, therefore, the labouring poor can maintain their families in dear
years, they must be at their ease in times of moderate plenty, and in
affluence in those of extraordinary cheapness. The high price of
provisions during these ten years past, has not, in many parts of the
kingdom, been accompanied with any sensible rise in the money price of
labour. It has, indeed, in some; owing, probably, more to the increase of
the demand for labour, than to that of the price of provisions.
Thirdly, as the price of provisions varies more from year to year than the
wages of labour, so, on the other hand, the wages of labour vary more from
place to place than the price of provisions. The prices of bread and
butchers’ meat are generally the same, or very nearly the same, through
the greater part of the united kingdom. These, and most other things which
are sold by retail, the way in which the labouring poor buy all things,
are generally fully as cheap, or cheaper, in great towns than in the
remoter parts of the country, for reasons which I shall have occasion to
explain hereafter. But the wages of labour in a great town and its
neighbourhood are frequently a fourth or a fifth part, twenty or five-and—twenty
per cent. higher than at a few miles distance. Eighteen pence a day may be
reckoned the common price of labour in London and its neighbourhood. At a
few miles distance, it falls to fourteen and fifteen pence. Tenpence may
be reckoned its price in Edinburgh and its neighbourhood. At a few miles
distance, it falls to eightpence, the usual price of common labour through
the greater part of the low country of Scotland, where it varies a good
deal less than in England. Such a difference of prices, which, it seems,
is not always sufficient to transport a man from one parish to another,
would necessarily occasion so great a transportation of the most bulky
commodities, not only from one parish to another, but from one end of the
kingdom, almost from one end of the world to the other, as would soon
reduce them more nearly to a level. After all that has been said of the
levity and inconstancy of human nature, it appears evidently from
experience, that man is, of all sorts of luggage, the most difficult to be
transported. If the labouring poor, therefore, can maintain their families
in those parts of the kingdom where the price of labour is lowest, they
must be in affluence where it is highest.
Public-domain text, read in full here on John Shaqi.
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