An Inquiry Into the Nature and Causes of the Wealth of NationsSmith, Adam
General
An Inquiry Into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
A man must always live by his work, and his wages must at least be
sufficient to maintain him. They must even upon most occasions be
somewhat more, otherwise it would be impossible for him to bring up a
family, and the race of such workmen could not last beyond the first
generation. Mr. Cantillon seems, upon this account, to suppose that the
lowest species of common labourers must everywhere earn at least double
their own maintenance, in order that, one with another, they may be
enabled to bring up two children; the labour of the wife, on account of
her necessary attendance on the children, being supposed no more than
sufficient to provide for herself. But one half the children born, it is
computed, die before the age of manhood. The poorest labourers,
therefore, according to this account, must, one with another, attempt to
rear at least four children, in order that two may have an equal chance
of living to that age. But the necessary maintenance of four children,
it is supposed, may be nearly equal to that of one man. The labour of an
able-bodied slave, the same author adds, is computed to be worth double
his maintenance; and that of the meanest labourer, he thinks, cannot be
worth less than that of an able-bodied slave. Thus far at least seems
certain, that, in order to bring up a family, the labour of the husband
and wife together must, even in the lowest species of common labour, be
able to earn something more than what in precisely necessary for their
own maintenance; but in what proportion, whether in that
above-mentioned, or in any other, I shall not take upon me to determine.
There are certain circumstances, however, which sometimes give the
labourers an advantage, and enable them to raise their wages
considerably above this rate, evidently the lowest which is consistent
with common humanity.
When in any country the demand for those who live by wages, labourers,
journeymen, servants of every kind, is continually increasing; when
every year furnishes employment for a greater number than had been
employed the year before, the workmen have no occasion to combine in
order to raise their wages. The scarcity of hands occasions a
competition among masters, who bid against one another in order to get
workmen, and thus voluntarily break through the natural combination of
master not to raise wages.
The demand for those who live by wages, it is evident, cannot increase
but in proportion to the increase of the funds which are destined to
the payment of wages. These funds are of two kinds; first, the revenue
which is over and above what is necessary for the maintenance; and,
secondly, the stock which is over and above what is necessary for the
employment of their masters.
Public-domain text, read in full here on John Shaqi.
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