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
Labour and capitals tend naturally to diffuse themselves through every
species of employment; and, as certain employments are, by their nature,
accompanied with inconveniencies and difficulties which do not occur in
others, while these, on the contrary, offer some real or imaginary
advantages which are peculiar to themselves; wages and profits should
rise and fall in proportion to these advantages and disadvantages; thus
forming a complete equilibrium between the various kinds of employment.
The arbitrary and oppressive policy of Europe, in many instances,
opposes the establishment of this equilibrium, which is conformable to
the order of nature--book 1, chap. x.
Of the _rent_ of the ground. The nature of rent: the manner in which it
enters into the price of wealth; and according to what principles it in
some cases forms an integral part of that price, while in others it does
not--book 1, chap. xi.
Division of the rude produce of the earth into two great classes:
1. That produce which is always necessarily disposed of in such a way
as to bring a rent to the landed proprietor.
2. That which, according to circumstances, may be disposed of so as
to bring, or so as not to bring, a rent.
The produce of the first description is derived from the ground
appropriated to furnishing subsistence for man, or for those animals
which he uses as food. The value of the produce of the ground cultivated
for the support of man, determines the value of the produce of all other
ground proper for this species of culture. This general rule allows of
some exceptions. Causes of these exceptions.
The produce of the second class consists of the materials of clothing,
lodging, fuel, and the ornaments of dress and furniture. The value of
this species of produce depends on that of the first description. Some
circumstances render it possible that the produce of the second kind may
be disposed of in such a way as to furnish a rent to the landed
proprietor. Principles which regulate the proportion of the price of
these products, which is formed by the rent--book 1, chap. xi.
Relation between the respective values of the produce of the first
class, and those of the produce of the second. Variations which may take
place in this relation, and the causes of such variations--ibid.
Relation existing between the values of the two descriptions of rude
produce above mentioned, and the values of the produce of manufacture.
Variations which may occur in this relation--ibid.
Certain kinds of rude produce, procured from very different sources,
are, however, intended for the same kind of consumption; and hence it
happens, the value of one determines and limits that of another--ibid.
The relations between values of different natures vary according to the
state of society. This state is _improving_, _declining_, or
_stationary_; that is to say, society is either increasing in wealth, or
falling into poverty, or remaining in the same unchanged state of
opulence.
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