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nydus/The Wealth of NationsPublic

Adam Smith lays the foundation of classical economics.

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Table of Contents

Editor’s Introduction

want of stock. But on the oppression of civil government he had much to say. At first governments were so feeble that they could not offer their subjects that security without which no man has any motive to be industrious. Afterwards, when governments became powerful enough to give internal security, they fought among themselves, and their subjects were harried by foreign enemies. Agriculture was hindered by great tracts of land being thrown into the hands of single persons. This led at first to cultivation by slaves, who had no motive to industry; then came tenants by steel-bow (métayers) who had no sufficient inducement to improve the land; finally the present method of cultivation by tenants was introduced, but these for a long time were insecure in their holdings, and had to pay rent in kind, which made them liable to be severely affected by bad seasons. Feudal subsidies discouraged industry, the law of primogeniture, entails, and the expense of transferring land prevented the large estates from being divided. The restrictions on the export of corn helped to stop the progress of agriculture. Progress in arts and commerce was also hindered by slavery, as well as by the ancient contempt for industry and commerce, by the want of enforcement of contracts, by the various difficulties and dangers of transport, by the establishment of fairs, markets and staple towns, by duties on imports and exports, and by monopolies, corporation privileges, the statute of apprenticeship and bounties.

Under the fourth and last head, the influence of commerce on the manners of a people, Smith pronounced that “whenever commerce is introduced into any country probity and punctuality always accompany it.” The trader deals so often that he finds honesty is the best policy. “Politicians are not the most remarkable men in the world for probity and punctuality. Ambassadors from different nations are still less so,” the reason being that nations treat with one another much more seldom than merchants.

But certain inconveniences arise from a commercial spirit. Men’s views are confined, and “when a person’s whole attention is bestowed on the

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