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
But though all things would have become cheaper in reality, in
appearance many things might have become dearer, than before, or have
been exchanged for a greater quantity of other goods. Let us suppose,
for example, that in the greater part of employments the productive
powers of labour had been improved to tenfold, or that a day's labour
could produce ten times the quantity of work which it had done
originally; but that in a particular employment they had been improved
only to double, or that a day's labour could produce only twice the
quantity of work which it had done before. In exchanging the produce of
a day's labour in the greater part of employments for that of a day's
labour in this particular one, ten times the original quantity of work
in them would purchase only twice the original quantity of it. Any
particular quantity in it, therefore, a pound weight, for example, would
appear to be five times dearer than before. In reality, however, it
would be twice as cheap. Though it required five times the quantity of
other goods to purchase it, it would require only half the quantity of
labour either to purchase or to produce it. The acquisition, therefore,
would be twice as easy as before.
But this original state of things, in which the labourer enjoyed the
whole produce of his own labour, could not last beyond the first
introduction of the appropriation of land and the accumulation of stock.
It was at an end, therefore, long before the most considerable
improvements were made in the productive powers of labour; and it would
be to no purpose to trace further what might have been its effects upon
the recompence or wages of labour.
As soon as land becomes private property, the landlord demands a share
of almost all the produce which the labourer can either raise or collect
from it. His rent makes the first deduction from the produce of the
labour which is employed upon land.
It seldom happens that the person who tills the ground has wherewithal
to maintain himself till he reaps the harvest. His maintenance is
generally advanced to him from the stock of a master, the farmer who
employs him, and who would have no interest to employ him, unless he was
to share in the produce of his labour, or unless his stock was to be
replaced to him with a profit. This profit makes a second deduction from
the produce of the labour which is employed upon land.
The produce of almost all other labour is liable to the like deduction
of profit. In all arts and manufactures, the greater part of the workmen
stand in need of a master, to advance them the materials of their work,
and their wages and maintenance, till it be completed. He shares in the
produce of their labour, or in the value which it adds to the materials
upon which it is bestowed; and in this share consists his profit.
Public-domain text, read in full here on John Shaqi.
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