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
The liberal reward of labour, therefore, as it is the necessary effect,
so it is the natural symptom of increasing national wealth. The scanty
maintenance of the labouring poor, on the other hand, is the natural
symptom that things are at a stand, and their starving condition, that
they are going fast backwards.
In Great Britain, the wages of labour seem, in the present times, to be
evidently more than what is precisely necessary to enable the labourer
to bring up a family. In order to satisfy ourselves upon this point, it
will not be necessary to enter into any tedious or doubtful calculation
of what may be the lowest sum upon which it is possible to do this.
There are many plain symptoms, that the wages of labour are nowhere in
this country regulated by this lowest rate, which is consistent with
common humanity.
First, in almost every part of Great Britain there is a distinction,
even in the lowest species of labour, between summer and winter wages.
Summer wages are always highest. But, on account of the extraordinary
expense of fuel, the maintenance of a family is most expensive in
winter. Wages, therefore, being highest when this expense is lowest, it
seems evident that they are not regulated by what is necessary for this
expense, but by the quantity and supposed value of the work. A labourer,
it may be said, indeed, ought to save part of his summer wages, in order
to defray his winter expense; and that, through the whole year, they do
not exceed what is necessary to maintain his family through the whole
year. A slave, however, or one absolutely dependent on us for immediate
subsistence, would not be treated in this manner. His daily subsistence
would be proportioned to his daily necessities.
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.
Public-domain text, read in full here on John Shaqi.
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