
The Wealth of Nations, Book 1
by Adam Smith
'The Wealth of Nations, Book 1' Summary
Book I: Of the Causes of Improvement in the productive Powers of Labour
Of the Division of Labour: Division of labour has caused a greater increase in production than any other factor. This diversification is greatest for nations with more industry and improvement, and is responsible for "universal opulence" in those countries. Agriculture is less amenable than manufacturing to division of labour; hence, rich nations are not so far ahead of poor nations in agriculture as in manufacturing.
Of the Principle which gives Occasion to the Division of Labour: Division of labour arises not from innate wisdom, but from humans' propensity to barter.
That the Division of Labour is limited by the Extent of the Market: Limited opportunity for exchange discourages division of labour. Because "water-carriage" (i.e. transportation) extends the market, division of labour, with its improvements, comes earliest to cities near waterways. Civilization began around the highly navigable Mediterranean Sea.
Of the Origin and Use of Money: With division of labour, the produce of one's own labour can fill only a small part of one's needs. Different commodities have served as a common medium of exchange, but all nations have finally settled on metals, which are durable and divisible, for this purpose. Before coinage, people had to weigh and assay with each exchange, or risk "the grossest frauds and impositions." Thus nations began stamping metal, on one side only, to ascertain purity, or on all sides, to stipulate purity and amount. The quantity of real metal in coins has diminished, due to the "avarice and injustice of princes and sovereign states," enabling them to pay their debts in appearance only, and to the defraudment of creditors.
Of the Wages of Labour: In this section, Smith describes how the wages of labour are dictated primarily by the competition among labourers and masters. When labourers bid against one another for limited opportunities for employment, the wages of labour collectively fall, whereas when employers compete against one another for limited supplies of labour, the wages of labour collectively rise. However, this process of competition is often circumvented by combinations among labourers and among masters. When labourers combine and no longer bid against one another, their wages rise, whereas when masters combine, wages fall. In Smith's day, organised labour was dealt with very harshly by the law.
Book Details
Language
EnglishOriginal Language
EnglishPublished In
1776Authors

Adam Smith
Scotland
Adam Smith was a Scottish economist, philosopher as well as a moral philosopher, a pioneer of political economy, and a key figure during the Scottish Enlightenment, also known as ''The Father of Econo...
Books by Adam SmithDownload eBooks
Listen/Download Audiobook
- Select Speed
Related books

Favole di Jean de La Fontaine: Libro 02 by Jean de La Fontaine
Nei 12 volumi delle "Favole" (1669 - 1693) Jean de La Fontaine rinnovò la tradizione esopica, rappresentando la commedia umana. Quest'opera dimostrò i...

Ingersoll on VOLTAIRE, from the Works of Robert G. Ingersoll, Volume 3, Lecture 4 by Robert G. Ingersoll
This book is a collection of lectures given by Robert G. Ingersoll on various famous people, including Voltaire. Ingersoll was a famous orator and per...

World-Power and Evolution by Ellsworth Huntington
Ellsworth Huntington's "World-Power and Evolution" delves into the intricate relationship between climate, civilization, and human progress. He argues...

Solitude (Pope) by Alexander Pope
LibriVox volunteers bring you 17 different recordings of Solitude by Alexander Pope. This was the weekly poetry project for the week of February 17th,...

No Animal Food and Nutrition and Diet with Vegetable Recipes by Rupert H. Wheldon
This groundbreaking book, published in the early 20th century, is considered the first vegan cookbook. It goes beyond simply offering recipes, provid...

Say Not the Struggle Naught Availeth by Arthur Hugh Clough
Arthur Hugh Clough's "Say Not the Struggle Naught Availeth" is a collection of poems reflecting the intellectual and moral turmoil of Victorian Englan...

Favole di Jean de La Fontaine: Libro 11 by Jean de La Fontaine
Nei 12 volumi delle "Favole" (1669 - 1693) Jean de La Fontaine rinnovò la tradizione esopica, rappresentando la commedia umana. Quest'opera dimostrò i...

Road Builders by Voltairine de Cleyre
LibriVox volunteers bring you 12 different recordings of The Road Builders, by Voltairine de Cleyre. This was the weekly poetry project for the week o...

Homo sapiens - Romantrilogie by Stanisław Przybyszewski
Die Romantrilogie „Homo Sapiens“ von Stanisław Przybyszewski folgt den vielfältigen Beziehungen des Schriftstellers Erik Falk im 19. Jahrhundert. Durc...

Resurrection, Book 3 by Leo Tolstoy
Resurrection is a novel by Leo Tolstoy that explores themes of redemption, social justice, and the hypocrisy of institutionalized religion. The story...
Reviews for The Wealth of Nations, Book 1
No reviews posted or approved, yet...