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
These assertions are almost all incontestible, and capable of a rigorous
demonstration; and those who have attempted to shew their falsity, have,
in general, opposed them only with idle sophistry. Why, then, has this
doctrine met with so little success, and why does every day diminish its
reputation? because it agrees in no one point with the moral condition,
either of societies or of individuals; because it is continually
contradicted by experience, and by the infallible instinct of
self-interest; because it does not possess that indispensible sanction
of all truths, utility. In fact, of what consequence is it, that the
labour of agriculture produces not only what covers its own expenses,
but new beings which would never have existed without it, and that it
has this advantage over the labour of manufactures and commerce? Does it
by any means follow from this, that the former kind of labour is more
profitable to the community than the latter? The real essence of all
wealth, and that which determines its value, is the necessity under
which the consumer lies to purchase it; for, in truth, there is no such
thing as wealth properly so called, nor absolute value; but the words
wealth and value are really nothing more than the co-relatives of
consumption and demand. Even the necessaries of life, in a country which
is inhabited, but incapable of commercial intercourse, will not form
wealth; and to whatever degree of civilization that country may have
reached, still the same principle will hold without alteration. If the
sum of national wealth shall in any case have exceeded the sum of
demands, then a part of the former sum will cease to bear the name of
wealth, and will again be without value. In vain, then, will agriculture
multiply her produce; for the instant that it exceeds the bounds of
actual consumption, a part will lose its value; and self-interest, that
prime director of all labour and industry, seeing herself thus deceived
in her expectations, will not fail to turn her activity and efforts to
another quarter.
Public-domain text, read in full here on John Shaqi.
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