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
Every town draws its whole subsistence, and all the materials of its
industry, from the country. It pays for these chiefly in two ways.
First, by sending back to the country a part of those materials wrought
up and manufactured; in which case, their price is augmented by the
wages of the workmen, and the profits of their masters or immediate
employers; secondly, by sending to it a part both of the rude and
manufactured produce, either of other countries, or of distant parts of
the same country, imported into the town; in which case, too, the
original price of those goods is augmented by the wages of the carriers
or sailors, and by the profits of the merchants who employ them. In what
is gained upon the first of those branches of commerce, consists the
advantage which the town makes by its manufactures; in what is gained
upon the second, the advantage of its inland and foreign trade. The
wages of the workmen, and the profits of their different employers, make
up the whole of what is gained upon both. Whatever regulations,
therefore, tend to increase those wages and profits beyond what they
otherwise would be, tend to enable the town to purchase, with a smaller
quantity of its labour, the produce of a greater quantity of the labour
of the country. They give the traders and artificers in the town an
advantage over the landlords, farmers, and labourers, in the country,
and break down that natural equality which would otherwise take place in
the commerce which is carried on between them. The whole annual produce
of the labour of the society is annually divided between these two
different sets of people. By means of those regulations, a greater share
of it is given to the inhabitants of the town than would otherwise fall
to them, and a less to those of the country.
The price which the town really pays for the provisions and materials
annually imported into it, is the quantity of manufactures and other
goods annually exported from it. The dearer the latter are sold, the
cheaper the former are bought. The industry of the town becomes more,
and that of the country less advantageous.
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