The Wealth of Nations

“ To sum up, it may be said that the Wealth of Nations certainly operated powerfully through the harmony of its critical side with the tendencies of the half -century which followed its publication to the assertion of personal freedom and "natural rights." It discredited the economic policy of the past, and promoted the overthrow of institutions which had come down from earlier times, but were unsuited to modern society. ”

“ Produced by Colin Muir, and David Widger An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith Contents
INTRODUCTION AND PLAN OF THE WORK.
The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniencies of life which it annually consumes, and which consist always either in the immediate produce of that labour, or in what is purchased with that produce from other nations. ”

“ Have they not promoted science, encouraged enterprise? Have they not nourished our colonies, given employment to our growing millions, made this little spot to swarm like a busy hive, and placed it as the centre of a wide-spreading civilisation—the heart of a mighty organisation? Should they, however, beget a thirst for gold—a mad pursuit for wealth, which will engross and absorb our thoughts and feelings to the exclusion of generous impulses and noble principles, hitherto main elements in the happiness and greatness of nations—will they be all gain? ”

“ In this manner it is, that the capital of a rich country supplies the want of it in poorer ones, and that, by degrees, a nation saps the foundation of its own wealth and greatness, and gives encouragement to them in others. ”

“ It is the object of that system to enrich a great nation, rather by trade and manufactures than by the improvement and cultivation of land, rather by the industry of the towns than by that of the country. ”

“ There are only two ways by which wealth is accumulated and brought into few hands; the one by compulsion and levying taxes, the other by producing or procuring objects of desire; for a small quantity of which, people give up a great portion of their labour.
Sovereigns have amassed wealth and possessed revenue by the first means, and the use they have put it to has been magnificence in building, or in great or useful works, for war, or for pleasure. ”

“ Though wealth and power are often found united, they are sometimes found separated. Wealth is altogether a real possession; power is comparative. Thus, a nation may be wealthy in itself, though unconnected with any other nation; but its power can only be estimated by a comparison with that of other nations.
Wealth consists in having abundance of whatever mankind want or desire; and if there were but one nation on earth, it might be wealthy ”

“ Whatever, therefore, we may imagine the real wealth and revenue of a country to consist in, whether in the value of the annual produce of its land and labour, as plain reason seems to dictate, or in the quantity of the precious metals which circulate within it, as vulgar prejudices suppose; in either view of the matter, every prodigal appears to be a public enemy, and every frugal man a public benefactor. ”

“ Nothing could be more agreeable to the spirit of that system than a sort of bounty upon the production of money, the very thing which, it supposes, constitutes the wealth of every nation. It is one of its many admirable expedients for enriching the country. ”

“ Does civilization consist in riches, whether national or individual? True, the command of wealth inspires respect in neighboring peoples; for national wealth means large resources, speedy armaments, flourishing colonies, and means of thwarting the commerce of lesser nations. But national wealth is seldom attained unless from the basis of individual wealth. It is impossible for the state to absorb and administer such resources as these, and yet to compel private citizens to lead lives of Spartan frugality. ”

“ If nations were to consider in what branches of manufacture they are best fitted to excel, it would save much rivalship, misunderstanding, and jealousy; at the same time that it would tend greatly to increase the general aggregate wealth of mankind. It is not to industry and effort alone that mankind owe wealth, but to industry and effort well directed. ”

“ The resources, wealth, and labor of twenty millions of freemen are amply sufficient to meet not only the physical, but financial, difficulties of the war. Thank God! the test to which all nations in the course of their history are subjected, is applied to us when we have a insignificant national debt; when our resources were never more manifest; when the loyal states are so throughly united; when our people are filled with a generous enthusiasm that will make the loss of life and burden of taxation easy to bear. ”

“ But the reputation of the book and its author is quite independent of considerations of this kind. The Wealth of Nations is one of the great books of the world, many of the sayings of which are likely to be more frequently quoted in the future than they have been in the 19th century. ”

“ It has hitherto been, not an empire, but the project of an empire; not a gold mine, but the project of a gold mine; a project which has cost, which continues to cost, and which, if pursued in the same way as it has been hitherto, is likely to cost, immense expense, without being likely to bring any profit; for the effects of the monopoly of the colony trade, it has been shewn, are to the great body of the people, mere loss instead of profit. ”

“ Nations which live exclusively on the wealth given them by nature make no effort to become greater, nor do they consider their future welfare, but perish, crushed by those whose envy and greed they excite.
On the other hand, those countries whose prosperity is based on the principles of justice, trade, and peace attain success and incite others to follow, contributing thus to the great work of universal civilization. ”

“ The increasing wealth and prosperity of the nation, under the heavy load of taxes, of which the debt is the principal occasion, is as much a matter of surprize as the ultimate result is an object of anxiety. ”

“ Such sacrifices, though they might frequently be agreeable to the interest, are always mortifying to the pride of every nation; and, what is perhaps of still greater consequence, they are always contrary to the private interest of the governing part of it, who would thereby be deprived of the disposal of many places of trust and profit, of many opportunities of acquiring wealth and distinction, which the possession of the most turbulent, and, to the great body of the people, the most unprofitable province, seldom fails to afford. ”

“ But the age, not caring for its conclusions, neglected its arguments. On the other hand, the Wealth of Nations harmonized with the general tendency, and its success was supreme. It quickly moved, not only philosophers, but even statesmen and politicians, who eventually put into force its leading recommendations, though, as their laws and their speeches abundantly prove, they have never succeeded in mastering those great principles which underlie it, and of which the freedom of trade is but a minor accessory. ”

“ The riches, and so far as power depends upon riches, the power of every country must always be in proportion to the value of its annual produce, the fund from which all taxes must ultimately be paid. But the great object of the political economy of every country, is to increase the riches and power of that country. It ought, therefore, to give no preference nor superior encouragement to the foreign trade of consumption above the home trade, nor to the carrying trade above either of the other two. ”

“ The new nations founded their power not on the fearlessness of their chevaliers, but on the extent of their financial resources. Wealth was needed to arm and to pay the soldiers, wealth to build warships, wealth to bribe diplomats. And since this wealth must come from the people by taxes, it was essential to have a people prosperous enough to pay taxes. ”

“ Sometimes nations owe their wealth and greatness to accidental causes, that, from their nature, must vanish away; and sometimes to causes which, depending upon the nations themselves, may be prolonged. In general, both the two sorts of causes have united to render every nation great that has been distinguished amongst others for riches or power. ”

“ The course of human prosperity, indeed, seems scarce ever to have been of so long continuance as to enable any great country to acquire capital sufficient for all those three purposes; unless, perhaps, we give credit to the wonderful accounts of the wealth and cultivation of China, of those of ancient Egypt, and of the ancient state of Indostan. ”

“ It was discovered a few centuries ago, that small principalities, and even single cities, acquired more wealth by industry, than all the mighty monarchs of the middle ages did by war; but we are not yet advanced to the ultimate end of the lessons that experience and reason give in regard to the interests of nations, with regard to wealth and power. ”

“ By this means, the whole society becomes, as it were, disjointed, and if the chain is not entirely broken, it has at least lost that strength and pliability that is necessary, either for the raising a nation to greatness, or supporting it after it has risen to a superior degree of rank or power.
Amongst the causes of the decline of wealthy nations, this then is one. The great lose sight of the origin of their wealth, and cease to consider, that all wealth originates in labour, and that, therefore, the industrious and productive classes are the sinews of riches and power. ”

“ Thus it is, that necessity acts but in a very inferior degree on the nation that is the farthest advanced; while it operates in a very powerful way on those that are in arrear; and this single reason, without the intervention of wars or any sort of contest or robbery, would, in the process of time, bring nations to a sort of equality in wealth and refinement; that is, it would bring them all into possession of the means of gratifying their wants. ”

“ that to attempt to increase the wealth of any country, either by introducing or by detaining in it an unnecessary quantity of gold and silver, is as absurd as it would be to attempt to increase the good cheer of private families, by obliging them to keep an unnecessary number of kitchen utensils. ”

“ If we find, then, that the increase of wealth renders the descendants of a particular family helpless, and unable to maintain their place in society; if we find, also, that it gives those portions of a country, which are the least advanced, an advantage over those which are the most advanced; and, if we find that the number of indigent increase most where the wealth is greatest, we surely must allow, that there is a strong tendency to decay that accompanies the acquisition of wealth. ”

“ The form of government, the security of property, and the free scope that is given to exertion in every line of business, will continue to enable this country to hold itself high, even if some of its present sources of wealth should be dried up; and, whatever may be the feelings of the representatives of the people upon ordinary occasions, the moment that any real danger occurs, they will, we are certain, act like men, determined to stand by their country. ”

“ Such a political economy, though it no doubt retards more or less, is not always capable of stopping altogether, the natural progress of a nation towards wealth and prosperity, and still less of making it go backwards. ”

“ Political economy, considered as a branch of the science of a statesman or legislator, proposes two distinct objects; first, to provide a plentiful revenue or subsistence for the people, or, more properly, to enable them to provide such a revenue or subsistence for themselves; and, secondly, to supply the state or commonwealth with a revenue sufficient for the public services. It proposes to enrich both the people and the sovereign. ”

“ It would be too ridiculous to go about seriously to prove, that wealth does not consist in money, or in gold and silver; but in what money purchases, and is valuable only for purchasing. Money, no doubt, makes always a part of the national capital; but it has already been shown that it generally makes but a small part, and always the most unprofitable part of it. ”

“ Others admit, that if a nation could be separated from all the world, it would be of no consequence how much or how little money circulated in it. The consumable goods, which were circulated by means of this money, would only be exchanged for a greater or a smaller number of pieces; but the real wealth or poverty of the country, they allow, would depend altogether upon the abundance or scarcity of those consumable goods. ”

“ Thus, for example, the Americans are increasing in wealth, from necessity, because their country is becoming better, by being cultivated, in order to produce what is necessary. They cannot have what they want, in the way they wish, without increasing or bettering the property of which they have taken possession. ”

“ Unless, therefore, they annually save some part of them, unless they annually deprive themselves of the enjoyment of some part of them, the revenue and wealth of their society can never be, in the smallest degree, augmented by means of their industry. Farmers and country labourers, on the contrary, may enjoy completely the whole funds destined for their own subsistence, and yet augment, at the same time, the revenue and wealth of their society. ”