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
A few words will suffice to explain the grounds of the doctrine of
Smith. The power by which a nation creates its wealth is its labour; and
the quantity of wealth created will increase in direct proportion as the
power increases. But the increase of this last may take place in two
ways--in energy, and in extent. Labour increases in energy, when the
same quantity of labour furnishes a more abundant product; and the two
great means of effecting the increase, or of perfecting the productive
powers of labour, are the division of labour, and the invention of such
machines as shorten and facilitate the manual operations of industry.
Labour increases in extent, when the number of those engaged in it
augments in proportion to the increasing number of the consumers, which
can take place only in consequence of an increase of capitals, and of
those branches of business in which they are employed.
Now, to accomplish the increase of labour in both these ways, and to
conduct it gradually to the utmost pitch of energy and extent to which
it can reach in any nation, considering the situation, the nature, and
the peculiarities of its territories, what are the exertions to be made
by its government? The subdivision of labour, and the invention and
perfecting of machines. These two great means of augmenting the energy
of labour, advance in proportion to the extent of the market, or, in
other words, in proportion to the number of exchanges which can be made,
and to the ease and readiness with which these can take place. Let the
government, then, direct all its attention to the enlargement of the
market, by forming safe and convenient roads, by the circulation of
sterling coin, and by securing the faithful fulfilment of contracts; all
of which are indispensible measures, at the same time that, when put in
practice, they will never fail to attain the desired end. And the nearer
a government approaches to perfection in each of these three points, the
more certainly will it produce every possible increase of the national
market. The first of the three means is, without doubt, the most
essential, as no other expedient whatever can possibly supply its place.
The gradual accumulation of capitals is a necessary consequence of the
increased productive powers of labour, and it becomes also a cause of
still farther increase in these powers; but, in proportion as this
accumulation becomes greater and greater, it serves to increase the
extent of labour, inasmuch as it multiplies the number of labourers, or
the sum of national industry. This increase, however, of the number of
hands in the nation employed, will always be regulated by the nature of
the business to which the capitals are dedicated.
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.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account