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
When the landlord, annuitant, or monied man, has a greater revenue than
what he judges sufficient to maintain his own family, he employs either
the whole or a part of the surplus in maintaining one or more menial
servants. Increase this surplus, and he will naturally increase the
number of those servants.
When an independent workman, such as a weaver or shoemaker, has got more
stock than what is sufficient to purchase the materials of his own work,
and to maintain himself till he can dispose of it, he naturally employs
one or more journeymen with the surplus, in order to make a profit by
their work. Increase this surplus, and he will naturally increase the
number of his journeymen.
The demand for those who live by wages, therefore, necessarily increases
with the increase of the revenue and stock of every country, and cannot
possibly increase without it. The increase of revenue and stock is the
increase of national wealth. The demand for those who live by wages,
therefore, naturally increases with the increase of national wealth, and
cannot possibly increase without it.
It is not the actual greatness of national wealth, but its continual
increase, which occasions a rise in the wages of labour. It is not,
accordingly, in the richest countries, in the most thriving, or in those
which are growing rich the fastest, that the wages of labour are
highest. England is certainly, in the present times, a much richer
country than any part of North America. The wages of labour, however,
are much higher in North America than in any part of England. In the
province of New York, common labourers earn[8] three shillings and
sixpence currency, equal to two shillings sterling, a-day;
ship-carpenters, ten shillings and sixpence currency, with a pint of
rum, worth sixpence sterling, equal in all to six shillings and sixpence
sterling; house-carpenters and bricklayers, eight shillings currency,
equal to four shillings and sixpence sterling; journeymen tailors, five
shillings currency, equal to about two shillings and tenpence sterling.
These prices are all above the London price; and wages are said to be as
high in the other colonies as in New York. The price of provisions is
everywhere in North America much lower than in England. A dearth has
never been known there. In the worst seasons they have always had a
sufficiency for themselves, though less for exportation. If the money
price of labour, therefore, be higher than it is anywhere in the
mother-country, its real price, the real command of the necessaries and
conveniencies of life which it conveys to the labourer, must be higher
in a still greater proportion.
Public-domain text, read in full here on John Shaqi.
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