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 increasing abundance of food, in consequence of the increasing
improvement and cultivation, must necessarily increase the demand for
every part of the produce of land which is not food, and which can be
applied either to use or to ornament. In the whole progress of
improvement, it might, therefore, be expected there should be only one
variation in the comparative values of those two different sorts of
produce. The value of that sort which sometimes does, and sometimes does
not afford rent, should constantly rise in proportion to that which
always affords some rent. As art and industry advance, the materials of
clothing and lodging, the useful fossils and materials of the earth, the
precious metals and the precious stones, should gradually come to be
more and more in demand, should gradually exchange for a greater and a
greater quantity of food; or, in other words, should gradually become
dearer and dearer. This, accordingly, has been the case with most of
these things upon most occasions, and would have been the case with all
of them upon all occasions, if particular accidents had not, upon some
occasions, increased the supply of some of them in a still greater
proportion than the demand.
The value of a free-stone quarry, for example, will necessarily increase
with the increasing improvement and population of the country round
about it, especially if it should be the only one in the neighbourhood.
But the value of a silver mine, even though there should not be another
within a thousand miles of it, will not necessarily increase with the
improvement of the country in which it is situated. The market for the
produce of a free-stone quarry can seldom extend more than a few miles
round about it, and the demand must generally be in proportion to the
improvement and population of that small district; but the market for
the produce of a silver mine may extend over the whole known world.
Unless the world in general, therefore, be advancing in improvement and
population, the demand for silver might not be at all increased by the
improvement even of a large country in the neighbourhood of the mine.
Even though the world in general were improving, yet if, in the course
of its improvements, new mines should be discovered, much more fertile
than any which had been known before, though the demand for silver would
necessarily increase, yet the supply might increase in so much a greater
proportion, that the real price of that metal might gradually fall; that
is, any given quantity, a pound weight of it, for example, might
gradually purchase or command a smaller and a smaller quantity of
labour, or exchange for a smaller and a smaller quantity of corn, the
principal part of the subsistence of the labourer.
The great market for silver is the commercial and civilized part of the
world.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account