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
It sometimes happens, indeed, that a single independent workman has
stock sufficient both to purchase the materials of his work, and to
maintain himself till it be completed. He is both master and workman,
and enjoys the whole produce of his own labour, or the whole value which
it adds to the materials upon which it is bestowed. It includes what are
usually two distinct revenues, belonging to two distinct persons, the
profits of stock, and the wages of labour.
Such cases, however, are not very frequent; and in every part of Europe
twenty workmen serve under a master for one that is independent, and the
wages of labour are everywhere understood to be, what they usually are,
when the labourer is one person, and the owner of the stock which
employs him another.
What are the common wages of labour, depends everywhere upon the
contract usually made between those two parties, whose interests are by
no means the same. The workmen desire to get as much, the masters to
give as little, as possible. The former are disposed to combine in order
to raise, the latter in order to lower, the wages of labour.
It is not, however, difficult to foresee which of the two parties must,
upon all ordinary occasions, have the advantage in the dispute, and
force the other into a compliance with their terms. The masters, being
fewer in number, can combine much more easily: and the law, besides,
authorises, or at least does not prohibit, their combinations, while it
prohibits those of the workmen. We have no acts of parliament against
combining to lower the price of work, but many against combining to
raise it. In all such disputes, the masters can hold out much longer. A
landlord, a farmer, a master manufacturer, or merchant, though they did
not employ a single workman, could generally live a year or two upon the
stocks, which they have already acquired. Many workmen could not subsist
a week, few could subsist a month, and scarce any a year, without
employment. In the long run, the workman may be as necessary to his
master as his master is to him; but the necessity is not so immediate.
Public-domain text, read in full here on John Shaqi.
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