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 account of these circumstances, with the discussion of the errors of
this system, form the matter of the third and fourth books.
* * * * *
Political Economy is, of all sciences, that which affords most room for
prejudices, and in which they are most liable to become deeply rooted.
The desire of improving our condition, that universal principle, which
continually acts upon every member of the community, is ever directing
the thoughts of each individual to the means of increasing his private
fortune. But should this individual ever chance to raise his views to
the management of the public money, he would naturally be led to reason
from analogy, and apply to the general interest of his country those
principles which reflection and experience have led him to regard as the
best guides in the conduct of his own private affairs. Thus, from
attending to the fact, that money constitutes a part of the productive
stock in the fortune of an individual, and that his fortune increases in
proportion to the increase of this article, there arises that erroneous
opinion so generally received, that money is a constituent part of
national wealth, and that a country becomes rich, in proportion as it
receives money from those countries with which it has commercial
connections.
Merchants who have been accustomed to retire each night to their desks,
to count, with eagerness, the quantity of currency, or of good debts,
which their day's sale has produced, calculating their profits only by
this result, and confident that such a calculation has never deceived
them, are naturally led to think that the affairs of the nation must
follow the same rule; and they have been strengthened in this opinion by
that unshaken confidence which a long and never-failing experience, that
has been the source of wealth and prosperity, inspires. Hence those
extravagant opinions respecting the advantages and profits of foreign
commerce, and the importance of money; hence those absurd calculations
that have been made regarding what is termed the balance of trade, the
thermometer of public prosperity; hence those systems of regulations,
and those oppressive monopolies, which are resorted to for the purpose
of making one side of the balance preponderate; hence, too, those bloody
and destructive wars, which have raged in both hemispheres, from the
period in which the road to the Indies, and to the new world, became
familiar to European nations.
Public-domain text, read in full here on John Shaqi.
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