|
An Inquiry into the Nature and Causes of the Wealth of Nations is the magnum opus of Adam Smith, published in 1776. It is a clearly
written account of economics at the dawn of the industrial revolution. The work is broken down into five books
between two volumes.
Nations is often mischaracterized and politicized. Many people are confident in their opinions regarding the author,
the work, and the subject matter -- yet have never read it. Left-wing writers
have characterized it as advocating the status quo, yet the work clearly discusses what Smith sees as the inefficiency, and
inappropriateness of tariffs, apprenticeships, immigration control and cartels - arrangements favourable to
special interest groups. Right-wing politicians have often used a sleight of
hand - erroneously equating "pro-business" with advocacy of free markets, thus using/abusing the Wealth of
Nations to support their own protectionist objectives.
Subject Matter
In Book One: Chapters I & III illustrate the growth in division of labor. Chapter X part ii, motivates an
understanding of the sunset of feudalism.
Mercantilism
It has been described as a critique of mercantilism and a synthesis of
the emerging economic thinking of his time. The book is usually considered to be the beginning of modern economics. It was written for the average educated individual of the 18th century rather than for other economists. Thus, for today's readers interested
in an accessible introduction to economics, this book continues to be much more useful even than many recent books on the
subject.
The Invisible Hand
This is an often quoted phrase from the book. Its meaning is that people will unintentionally improve their community through
pursuit of their own wants and needs. The Butcher, the Baker, and the Brewer provide goods and services to each other out of
self-interest; the unplanned result of this division of labor is a better standard of living for all three. (Book one,
chapter II)
Meritocracy
A strong theme in the work, meritocracy suggests rewarding merit.
History
The Wealth of Nations came out of the Enlightenment
Era. It influenced not only authors and economist, but governments and organizations. For example, Alexander Hamilton was impressed by and influenced by the Wealth of
Nations. see American Revolution. It has been said
that this work was a response to the French writing on the subjects of good governance, including commerce and regulation. This
is partially true. However, the work is a leap forward in economics. Akin to Principia for Physics and modern Mathematics and the Physical Sciences
generally.
Many authors were influenced by the work and used it as a starting point in their own work. For example, Jean-Baptiste Say, David Ricardo, and later, Karl Marx.
Anachronisms
Some commentary on the work suffers from anachronism. This is the result of reading the work as though it were written today.
The book is written in modern English, but there are some points to consider:
External links
See Also Adam Smith.
|