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 soil,' say the economists, 'is the source of all wealth.' But, to
prevent this assertion from leading us into erroneous conclusions, it
will be necessary to explain it. The materials of all wealth originate
primarily in the bosom of the earth; but it is only by the aid of labour
that they can ever truly constitute wealth. The earth furnishes the
means of wealth; but wealth itself cannot possibly have any existence,
unless through that industry and labour which modifies, divides,
connects, and combines the various productions of the soil, so as to
render them fit for consumption. Commerce, indeed, regards those rude
productions as real wealth; but it is only from the consideration, that
the proprietor has it always in his power to convert them, at will, into
consumable goods, by submitting them to the necessary operations of
manufacture. They possess, as yet, merely the virtual value of a
promissory-note, which passes current, because the bearer is assured
that he can, at pleasure, convert it into cash. Many gold mines, which
are well known, are not worked, because their whole produce would not
cover the incidental expenses; but the gold which they contain is, in
reality, the same with that of our coin; and yet no one would be foolish
enough to call it wealth, for there is no probability it will ever be
extracted from the mine, or purified; and, of course, it possesses no
value. The wild fowl becomes wealth the moment it is in the possession
of the sportsman; while those of the very same species, that have
escaped his attempts, remain without any title to the term.
Public-domain text, read in full here on John Shaqi.
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