Adam Smith book Wealth of Nations

July 5, 2015
Kristen & Tony Curraghchase

[56] The scarcity of a dear year, by diminishing the demand for labour, tends to lower its price, as the high price of provisions tends to raise it. The plenty of a cheap year, on the contrary, by increasing the demand, tends to raise the price of labour, as the cheapness of provisions tends to lower it. In the ordinary variations of the price of provisions those two opposite causes seem to counterbalance one another, which is probably in part the reason why the wages of labour are everywhere so much more steady and permanent than the price of provisions.

[57] The increase in the wages of labour necessarily increases the price of many commodities, by increasing that part of it which resolves itself into wages, and so far tends to diminish their consumption both at home and abroad. The same cause, however, which raises the wages of labour, the increase of stock, tends to increase its productive powers, and to make a smaller quantity of labour produce a greater quantity of work. The owner of the stock which employs a great number of labourers, necessarily endeavours, for his own advantage, to make such a proper division and distribution of employment that they may be enabled to produce the greatest quantity of work possible. For the same reason, he endeavours to supply them with the best machinery which either he or they can think of. What takes place among the labourers in a particular workhouse takes place, for the same reason, among those of a great society. The greater their number, the more they naturally divide themselves into different classes and subdivisions of employment. More heads are occupied in inventing the most proper machinery for executing the work of each, and it is, therefore, more likely to be invented. There are many commodities, therefore, which, in consequence of these improvements, come to be produced by so much less labour than before that the increase of its price is more than compensated by the diminution of its quantity.

e liquids

YOU MIGHT ALSO LIKE
Adam Smith - The Wealth of Nations Book 1 C05P01-2 (Of the
Adam Smith - The Wealth of Nations Book 1 C05P01-2 (Of the ...
Adam Smith - The Wealth of Nations Book 1 C11P05-2 (Of the
Adam Smith - The Wealth of Nations Book 1 C11P05-2 (Of the ...
Adam Smith - The Wealth of Nations Book 1 C11P08-4 (Of the
Adam Smith - The Wealth of Nations Book 1 C11P08-4 (Of the ...
Share this Post