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The Wealth of Nations

An Inquiry into the Nature and Causes of the
The Wealth of Nations
Wealth of Nations, generally referred to by its
shortened title The Wealth of Nations, is the
magnum opus of the Scottish economist and moral
philosopher Adam Smith (1723–1790). First
published in 1776, the book offers one of the world's
first connected accounts of what builds nations'
wealth, and has become a fundamental work in
classical economics. This is the first formulation of a
comprehensive system of political economy.[1]
Reflecting upon economics at the beginning of the
Industrial Revolution, Smith addresses topics such
as the division of labour, productivity, and free
markets.[2]

History Title-page of the 1776 London edition

Author Adam Smith
The Wealth of Nations was published in two volumes
Language English
on 9 March 1776 (with books I–III included in the
first volume and books IV and V included in the Genre Economics, philosophy
second),[3] during the Scottish Enlightenment and Publisher W. Strahan and T. Cadell,
[4]
the Scottish Agricultural Revolution. It influenced London
several authors and economists, such as Karl Marx, Publication 9 March 1776
as well as governments and organizations, setting the date
terms for economic debate and discussion for the Publication Scotland, Kingdom of Great
[5]
next century and a half. For example, Alexander place Britain
Hamilton was influenced in part by The Wealth of Text The Wealth of Nations at
Nations to write his Report on Manufactures, in Wikisource
which he argued against many of Smith's policies.
Hamilton based much of this report on the ideas of
Jean-Baptiste Colbert, and it was, in part, Colbert's ideas that Smith responded to, and criticised,
with The Wealth of Nations.[6]

The Wealth of Nations was the product of seventeen years of notes and earlier studies, as well as an
observation of conversation among economists of the time (like Nicholas Magens) concerning
economic and societal conditions during the beginning of the Industrial Revolution, and it took

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Smith some ten years to produce.[7] The result was a treatise which sought to offer a practical
application for reformed economic theory to replace the mercantilist and physiocratic economic
theories that were becoming less relevant in the time of industrial progress and innovation.[8] It
provided the foundation for economists, politicians, mathematicians, and thinkers of all fields to
build upon. Irrespective of historical influence, The Wealth of Nations represented a clear
paradigm shift in the field of economics,[9] comparable to what Immanuel Kant's Critique of Pure
Reason was for philosophy.

Five editions of The Wealth of Nations were published during Smith's

lifetime: in 1776, 1778,[10] 1784, 1786 and 1789.[11] Numerous editions
appeared after Smith's death in 1790. To better understand the
evolution of the work under Smith's hand, a team led by Edwin Cannan
collated the first five editions. The differences were published along
with an edited sixth edition in 1904.[12] They found minor but
numerous differences (including the addition of many footnotes)
between the first and the second editions; the differences between the
second and third editions are major.[13] In 1784, Smith annexed these
first two editions with the publication of Additions and Corrections to
the First and Second Editions of Dr. Adam Smith's Inquiry into the
Bust of Smith in the Adam
Nature and Causes of the Wealth of Nations, and he also had published
Smith Theatre, Kirkcaldy
the three-volume third edition of the Wealth of Nations, which
incorporated Additions and Corrections and, for the first time, an
index. Among other things, the Additions and Corrections included entirely new sections,
particularly to book 4, chapters 4 and 5, and to book 5, chapter 1, as well as an additional chapter
(8), "Conclusion of the Mercantile System", in book 4.[13]

The fourth edition, published in 1786, had only slight differences from the third edition, and Smith
himself says in the Advertisement at the beginning of the book, "I have made no alterations of any
kind."[14] Finally, Cannan notes only trivial differences between the fourth and fifth editions—a set
of misprints being removed from the fourth and a different set of misprints being introduced.

Synopsis

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. This is in part due to increased
quality of production, but more importantly because of increased efficiency of production, leading
to a higher nominal output of units produced per time unit.[15] 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

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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 employment opportunities, 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.

Smith himself wrote about the "severity" of such laws against worker actions, and made a point to
contrast the "clamour" of the "masters" against workers' associations, while associations and
collusions of the masters "are never heard by the people" though such actions are "always" and
"everywhere" taking place:

"We rarely hear, it has been said, of the combinations of masters, though frequently of
those of workmen. But whoever imagines, upon this account, that masters rarely
combine, is as ignorant of the world as of the subject. Masters are always and
everywhere in a sort of tacit, but constant and uniform, combination, not to raise the
wages of labour above their actual rate [...] Masters, too, sometimes enter into
particular combinations to sink the wages of labour even below this rate. These are
always conducted with the utmost silence and secrecy till the moment of execution; and
when the workmen yield, as they sometimes do without resistance, though severely felt
by them, they are never heard of by other people". In contrast, when workers combine,
"the masters [...] never cease to call aloud for the assistance of the civil magistrate, and
the rigorous execution of those laws which have been enacted with so much severity
against the combination of servants, labourers, and journeymen."[16]

In societies where the amount of labour exceeds the amount of revenue available for waged labour,
competition among workers is greater than the competition among employers, and wages fall.

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Conversely, where revenue is abundant, labour wages rise. Smith argues that, therefore, labour
wages only rise as a result of greater revenue disposed to pay for labour. Smith thought of labour as
being like any other commodity in this respect:

the demand for men, like that for any other commodity, necessarily regulates the
production of men; quickens it when it goes on too slowly, and stops it when it advances
too fast. It is this demand which regulates and determines the state of propagation in all
the different countries of the world, in North America, in Europe, and in China; which
renders it rapidly progressive in the first, slow and gradual in the second, and altogether
stationary in the last.[17]

However, the amount of revenue must increase constantly in proportion to the amount of labour
for wages to remain high. Smith illustrates this by juxtaposing England with the North American
colonies. In England, there is more revenue than in the colonies, but wages are lower, because
more workers flock to new employment opportunities caused by the large amount of revenue – so
workers eventually compete against each other as much as they did before. By contrast, as capital
continues to flow to the colonial economies at least at the same rate that population increases to
"fill out" this excess capital, wages there stay higher than in England.

Smith was highly concerned about the problems of poverty. He writes:

poverty, though it does not prevent the generation, is extremely unfavourable to the
rearing of children [...] It is not uncommon [...] in the Highlands of Scotland for a mother
who has borne twenty children not to have two alive [...] In some places one half the
children born die before they are four years of age; in many places before they are seven;
and in almost all places before they are nine or ten. This great mortality, however, will
every where be found chiefly among the children of the common people, who cannot
afford to tend them with the same care as those of better station.[18]

The only way to determine whether a man is rich or poor is to examine the amount of labour he can
afford to purchase. "Labour is the real exchange for commodities".

Smith also describes the relation of cheap years and the production of manufactures versus the
production in dear years. He argues that while some examples, such as the linen production in
France, show a correlation, another example in Scotland shows the opposite. He concludes that
there are too many variables to make any statement about this.

Of the Profits of Stock: In this chapter, Smith uses interest rates as an indicator of the profits of
stock. This is because interest can only be paid with the profits of stock, and so creditors will be
able to raise rates in proportion to the increase or decrease of the profits of their debtors.

Smith argues that the profits of stock are inversely proportional to the wages of labour, because as
more money is spent compensating labour, there is less remaining for personal profit. It follows
that, in societies where competition among labourers is greatest relative to competition among
employers, profits will be much higher. Smith illustrates this by comparing interest rates in

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England and Scotland. In England, government laws against usury had kept maximum interest
rates very low, but even the maximum rate was believed to be higher than the rate at which money
was usually loaned. In Scotland, however, interest rates are much higher. This is the result of a
greater proportion of capitalists in England, which offsets some competition among labourers and
raises wages.

However, Smith notes that, curiously, interest rates in the colonies are also remarkably high (recall
that, in the previous chapter, Smith described how wages in the colonies are higher than in
England). Smith attributes this to the fact that, when an empire takes control of a colony, prices for
a huge abundance of land and resources are extremely cheap. This allows capitalists to increase
their profits, but simultaneously draws many capitalists to the colonies, increasing the wages of
labour. As this is done, however, the profits of stock in the mother country rise (or at least cease to
fall), as much of it has already flocked offshore.

Of Wages and Profit in the Different Employments of Labour and Stock: Smith
repeatedly attacks groups of politically aligned individuals who attempt to use their collective
influence to manipulate the government into doing their bidding. At the time, these were referred
to as "factions", but are now more commonly called "special interests," a term that can comprise
international bankers, corporate conglomerations, outright oligopolies, trade unions and other
groups. Indeed, Smith had a particular distrust of the tradesman class. He felt that the members of
this class, especially acting together within the guilds they want to form, could constitute a power
block and manipulate the state into regulating for special interests against the general interest:

People of the same trade seldom meet together, even for merriment and diversion, but the
conversation ends in a conspiracy against the public, or in some contrivance to raise
prices. It is impossible indeed to prevent such meetings, by any law which either could be
executed, or would be consistent with liberty and justice. But though the law cannot
hinder people of the same trade from sometimes assembling together, it ought to do
nothing to facilitate such assemblies; much less to render them necessary.

Smith also argues against government subsidies of certain trades, because this will draw many
more people to the trade than what would otherwise be normal, collectively lowering their wages.

Of the Rent of the Land: Chapter 10, part ii, motivates an understanding of the idea of
feudalism. Rent, considered as the price paid for the use of land, is naturally the highest the tenant
can afford in the actual circumstances of the land. In adjusting lease terms, the landlord
endeavours to leave him no greater share of the produce than what is sufficient to keep up the
stock from which he furnishes the seed, pays the labour, and purchases and maintains the cattle
and other instruments of husbandry, together with the ordinary profits of farming stock in the
neighbourhood.

This is evidently the smallest share with which the tenant can content himself without being a
loser, and the landlord seldom means to leave him any more. Whatever part of the produce, or,
what is the same thing, whatever part of its price, is over and above this share, he naturally
endeavours to reserve to himself as the rent of his land, which is evidently the highest the tenant

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can afford to pay in the actual circumstances of the land. Sometimes, indeed, the liberality, more
frequently the ignorance, of the landlord, makes him accept of somewhat less than this portion;
and sometimes too, though more rarely, the ignorance of the tenant makes him undertake to pay
somewhat more, or to content himself with somewhat less, than the ordinary profits of farming
stock in the neighbourhood. This portion, however, may still be considered as the natural rent of
land, or the rent for which it is naturally meant that land should for the most part be let.

Book II: Of the Nature, Accumulation, and Employment of Stock

Of the Division of Stock:

When the stock which a man possesses is no more than sufficient to maintain him for a
few days or a few weeks, he seldom thinks of deriving any revenue from it. He
consumes it as sparingly as he can, and endeavours by his labour to acquire something
which may supply its place before it be consumed altogether. His revenue is, in this
case, derived from his labour only. This is the state of the greater part of the labouring
poor in all countries. But when he possesses stock sufficient to maintain him for
months or years, he naturally endeavours to derive a revenue from the greater part of it;
reserving only so much for his immediate consumption as may maintain him till this
revenue begins to come in. His whole stock, therefore, is distinguished into two parts.
That part which, he expects, is to afford him this revenue, is called his capital.[19]

Of Money Considered as a particular Branch of the General Stock of the Society:

From references of the first book, that the price of the greater part of commodities
resolves itself into three parts, of which one pays the wages of the labour, another the
profits of the stock, and a third the rent of the land which had been employed in
producing and bringing them to market: that there are, indeed, some commodities of
which the price is made up of two of those parts only, the wages of labour, and the profits
of stock: and a very few in which it consists altogether in one, the wages of labour: but
that the price of every commodity necessarily resolves itself into some one, or other, or all
of these three parts; every part of it which goes neither to rent nor to wages, being
necessarily profit to somebody.

Of the Accumulation of Capital, or of Productive and Unproductive Labour:

One sort of labour adds to the value of the subject upon which it is bestowed: there is
another which has no such effect. The former, as it produces a value, may be called
productive; the latter, unproductive labour. Thus the labour of a manufacturer adds,
generally, to the value of the materials which he works upon, that of his own maintenance,
and of his master's profit. The labour of a menial servant, on the contrary, adds to the
value of nothing.

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Of Stock Lent at Interest:

The stock which is lent at interest is always considered as a capital by the lender. He
expects that in due time it is to be restored to him, and that in the meantime the borrower
is to pay him a certain annual rent for the use of it. The borrower may use it either as a
capital, or as a stock reserved for immediate consumption. If he uses it as a capital, he
employs it in the maintenance of productive labourers, who reproduce the value with a
profit. He can, in this case, both restore the capital and pay the interest without alienating
or encroaching upon any other source of revenue. If he uses it as a stock reserved for
immediate consumption, he acts the part of a prodigal, and dissipates in the maintenance
of the idle what was destined for the support of the industrious. He can, in this case,
neither restore the capital nor pay the interest without either alienating or encroaching
upon some other source of revenue, such as the property or the rent of land. The stock
which is lent at interest is, no doubt, occasionally employed in both these ways, but in the
former much more frequently than in the latter.

Of the different employment of Capital:

A capital may be employed in four different ways; either, first, in procuring the rude
produce annually required for the use and consumption of the society; or, secondly, in
manufacturing and preparing that rude produce for immediate use and consumption; or,
thirdly in transporting either the rude or manufactured produce from the places where
they abound to those where they are wanted; or, lastly, in dividing particular portions of
either into such small parcels as suit the occasional demands of those who want them.

Book III: Of the different Progress of Opulence in different Nations

Long-term economic growth

Adam Smith uses this example to address long-term economic growth. Smith states, "As
subsistence is, in the nature of things, prior to conveniency and luxury, so the industry which
procures the former, must necessarily be prior to that which ministers to the latter".[20] In order
for industrial success, subsistence is required first from the countryside. Industry and trade occur
in cities while agriculture occurs in the countryside.

Agricultural jobs
Agricultural work is a more desirable situation than industrial work because the owner is in
complete control. Smith states that:

In our North American colonies, where uncultivated land is still to be had upon easy
terms, no manufactures for distant sale have ever yet been established in any of their
towns. When an artificer has acquired a little more stock than is necessary for carrying

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on his own business in supplying the neighbouring country, he does not, in North
America, attempt to establish with it a manufacture for more distant sale, but employs
it in the purchase and improvement of uncultivated land. From artificer he becomes
planter, and neither the large wages nor the easy subsistence which that country affords
to artificers, can bribe him rather to work for other people than for himself. He feels
that an artificer is the servant of his customers, from whom he derives his subsistence;
but that a planter who cultivates his own land, and derives his necessary subsistence
from the labour of his own family, is really a master, and independent of all the world.
[20]

Where there is open countryside agriculture is much preferable to industrial occupations and
ownership.

Adam Smith goes on to say "According to the natural course of things, therefore, the greater part of
the capital of every growing society is, first, directed to agriculture, afterwards to manufactures,
and last of all to foreign commerce".[20] This sequence leads to growth, and therefore opulence.

The great commerce of every civilised society is that carried on between the inhabitants of
the town and those of the country. It consists in the exchange of crude for manufactured
produce, either immediately, or by the intervention of money, or of some sort of paper
which represents money. The country supplies the town with the means of subsistence
and the materials of manufacture. The town repays this supply by sending back a part of
the manufactured produce to the inhabitants of the country. The town, in which there
neither is nor can be any reproduction of substances, may very properly be said to gain its
whole wealth and subsistence from the country. We must not, however, upon this
account, imagine that the gain of the town is the loss of the country. The gains of both are
mutual and reciprocal, and the division of labour is in this, as in all other cases,
advantageous to all the different persons employed in the various occupations into which
it is subdivided.

Of the Discouragement of Agriculture: Chapter 2's long title is "Of the Discouragement of
Agriculture in the Ancient State of Europe after the Fall of the Roman Empire".

When the German and Scythian nations overran the western provinces of the Roman
empire, the confusions which followed so great a revolution lasted for several centuries.
The rapine and violence which the barbarians exercised against the ancient inhabitants
interrupted the commerce between the towns and the country. The towns were deserted,
and the country was left uncultivated, and the western provinces of Europe, which had
enjoyed a considerable degree of opulence under the Roman empire, sunk into the lowest
state of poverty and barbarism. During the continuance of those confusions, the chiefs
and principal leaders of those nations acquired or usurped to themselves the greater part
of the lands of those countries. A great part of them was uncultivated; but no part of them,
whether cultivated or uncultivated, was left without a proprietor. All of them were
engrossed, and the greater part by a few great proprietors. This original engrossing of

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uncultivated lands, though a great, might have been but a transitory evil. They might soon
have been divided again, and broke into small parcels either by succession or by
alienation. The law of primogeniture hindered them from being divided by succession: the
introduction of entails prevented their being broke into small parcels by alienation.

Of the Rise and Progress of Cities and Towns, after the Fall of the Roman Empire:

The inhabitants of cities and towns were, after the fall of the Roman empire, not more
favoured than those of the country. They consisted, indeed, of a very different order of
people from the first inhabitants of the ancient republics of Greece and Italy. These last
were composed chiefly of the proprietors of lands, among whom the public territory was
originally divided, and who found it convenient to build their houses in the
neighbourhood of one another, and to surround them with a wall, for the sake of common
defence. After the fall of the Roman empire, on the contrary, the proprietors of land seem
generally to have lived in fortified castles on their own estates, and in the midst of their
own tenants and dependants. The towns were chiefly inhabited by tradesmen and
mechanics, who seem in those days to have been of servile, or very nearly of servile
condition. The privileges which we find granted by ancient charters to the inhabitants of
some of the principal towns in Europe sufficiently show what they were before those
grants. The people to whom it is granted as a privilege that they might give away their own
daughters in marriage without the consent of their lord, that upon their death their own
children, and not their lord, should succeed to their goods, and that they might dispose of
their own effects by will, must, before those grants, have been either altogether or very
nearly in the same state of villanage with the occupiers of land in the country.

How the Commerce of the Towns Contributed to the Improvement of the Country:
Smith often harshly criticised those who act purely out of self-interest and greed, and warns that,

...[a]ll for ourselves, and nothing for other people, seems, in every age of the world, to
have been the vile maxim of the masters of mankind.[21]

Book IV: Of Systems of political Economy

Smith vigorously attacked the antiquated government restrictions he thought hindered industrial
expansion. In fact, he attacked most forms of government interference in the economic process,
including tariffs, arguing that this creates inefficiency and high prices in the long run. It is believed
that this theory influenced government legislation in later years, especially during the 19th century.

Smith advocated a government that was active in sectors other than the economy. He advocated
public education for poor adults, a judiciary, and a standing army—institutional systems not
directly profitable for private industries.

Of the Principle of the Commercial or Mercantile System: The book has sometimes been

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described as a critique of mercantilism and a synthesis of the emerging economic thinking of

Smith's time. Specifically, The Wealth of Nations attacks, inter alia, two major tenets of
mercantilism:

1. The idea that protectionist tariffs serve the economic interests of a nation (or indeed any
purpose whatsoever) and
2. The idea that large reserves of gold bullion or other precious metals are necessary for a
country's economic success. This critique of mercantilism was later used by David Ricardo
when he laid out his Theory of Comparative Advantage.
Of Restraints upon the Importation: Chapter 2's full title is "Of Restraints upon the
Importation from Foreign Countries of such Goods as can be Produced at Home". The "invisible
hand" is a frequently referenced theme from the book, although it is specifically mentioned only
once.

As every individual, therefore, endeavours as much as he can both to employ his capital in
the support of domestic industry, and so to direct that industry that its produce may be of
the greatest value; every individual necessarily labours to render the annual revenue of
the society as great as he can. He generally, indeed, neither intends to promote the public
interest, nor knows how much he is promoting it. By preferring the support of domestic to
that of foreign industry, he intends only his own security; and by directing that industry in
such a manner as its produce may be of the greatest value, he intends only his own gain,
and he is in this, as in many other cases, led by an invisible hand to promote an end which
was no part of his intention. Nor is it always the worse for the society that it was no part of
it. By pursuing his own interest he frequently promotes that of the society more effectually
than when he really intends to promote it. (Book 4, Chapter 2)

The metaphor of the "invisible hand" has been widely used out of context. In the passage above
Smith is referring to "the support of domestic industry" and contrasting that support with the
importation of goods. Neoclassical economic theory has expanded the metaphor beyond the
domestic/foreign manufacture argument to encompass nearly all aspects of economics.[22]

Of the extraordinary Restraints: Chapter 3's long title is "Of the extraordinary Restraints
upon the Importation of Goods of almost all Kinds, from those Countries with which the Balance is
supposed to be Disadvantageous".

Of Drawbacks: Merchants and manufacturers are not contented with the monopoly of the home
market, but desire likewise the most extensive foreign sale for their goods. Their country has no
jurisdiction in foreign nations, and therefore can seldom procure them any monopoly there. They
are generally obliged, therefore, to content themselves with petitioning for certain encouragements
to exportation.

Of these encouragements what are called Drawbacks seem to be the most reasonable. To allow the
merchant to draw back upon exportation, either the whole or a part of whatever excise or inland
duty is imposed upon domestic industry, can never occasion the exportation of a greater quantity
of goods than what would have been exported had no duty been imposed. Such encouragements do

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not tend to turn towards any particular employment a greater share of the capital of the country
than what would go to that employment of its own accord, but only to hinder the duty from driving
away any part of that shares to other employments.

Of Bounties: Bounties upon exportation are, in Great Britain, frequently petitioned for, and
sometimes granted to the produce of particular branches of domestic industry. By means of them
our merchants and manufacturers, it is pretended, will be enabled to sell their goods as cheap, or
cheaper than their rivals in the foreign market. A greater quantity, it is said, will thus be exported,
and the balance of trade consequently turned more in favour of our own country. We cannot give
our workmen a monopoly in the foreign as we have done in the home market. We cannot force
foreigners to buy their goods as we have done our own countrymen. The next best expedient, it has
been thought, therefore, is to pay them for buying. It is in this manner that the mercantile system
proposes to enrich the whole country, and to put money into all our pockets by means of the
balance of trade.

Of Treaties of Commerce:

When a nation binds itself by treaty either to permit the entry of certain goods from one
foreign country which it prohibits from all others, or to exempt the goods of one country
from duties to which it subjects those of all others, the country, or at least the merchants
and manufacturers of the country, whose commerce is so favoured, must necessarily
derive great advantage from the treaty. Those merchants and manufacturers enjoy a sort
of monopoly in the country which is so indulgent to them. That country becomes a market
both more extensive and more advantageous for their goods: more extensive, because the
goods of other nations being either excluded or subjected to heavier duties, it takes off a
greater quantity of theirs: more advantageous, because the merchants of the favoured
country, enjoying a sort of monopoly there, will often sell their goods for a better price
than if exposed to the free competition of all other nations. Such treaties, however, though
they may be advantageous to the merchants and manufacturers of the favoured, are
necessarily disadvantageous to those of the favouring country. A monopoly is thus
granted against them to a foreign nation; and they must frequently buy the foreign goods
they have occasion for dearer than if the free competition of other nations was admitted.

Of Colonies:

Of the Motives for establishing new Colonies:

The interest which occasioned the first settlement of the different European colonies in
America and the West Indies was not altogether so plain and distinct as that which
directed the establishment of those of ancient Greece and Rome. All the different states of
ancient Greece possessed, each of them, but a very small territory, and when the people in
any one of them multiplied beyond what that territory could easily maintain, a part of
them were sent in quest of a new habitation in some remote and distant part of the world;
warlike neighbours surrounded them on all sides, rendering it difficult for any of them to
enlarge their territory at home. The colonies of the Dorians resorted chiefly to Italy and

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Sicily, which, in the times preceding the foundation of Rome, were inhabited by barbarous
and uncivilised nations: those of the Ionians and Eolians, the two other great tribes of the
Greeks, to Asia Minor and the islands of the Egean Sea, of which the inhabitants seem at
that time to have been pretty much in the same state as those of Sicily and Italy. The
mother city, though she considered the colony as a child, at all times entitled to great
favour and assistance, and owing in return much gratitude and respect, yet considered it
as an emancipated child over whom she pretended to claim no direct authority or
jurisdiction. The colony settled its own form of government, enacted its own laws, elected
its own magistrates, and made peace or war with its neighbours as an independent state,
which had no occasion to wait for the approbation or consent of the mother city. Nothing
can be more plain and distinct than the interest which directed every such establishment.

Causes of Prosperity of new Colonies:

The colony of a civilised nation which takes possession either of a waste country, or of one
so thinly inhabited that the natives easily give place to the new settlers, advances more
rapidly to wealth and greatness than any other human society. The colonists carry out
with them a knowledge of agriculture and of other useful arts superior to what can grow
up of its own accord in the course of many centuries among savage and barbarous
nations. They carry out with them, too, the habit of subordination, some notion of the
regular government which takes place in their own country, of the system of laws which
supports it, and of a regular administration of justice; and they naturally establish
something of the same kind in the new settlement.

Of the Advantages which Europe has derived from the Discovery of America, and
from that of a Passage to the East Indies by the Cape of Good Hope:

Such are the advantages which the colonies of America have derived from the policy of
Europe. What are those which Europe has derived from the discovery and colonisation of
America? Those advantages may be divided, first, into the general advantages which
Europe, considered as one great country, has derived from those great events; and,
secondly, into the particular advantages which each colonising country has derived from
the colonies which particularly belong to it, in consequence of the authority or dominion
which it exercises over them.:

The general advantages which Europe, considered as one great country, has derived from
the discovery and colonisation of America, consist, first, in the increase of its enjoyments;
and, secondly, in the augmentation of its industry.

The surplus produce of America, imported into Europe, furnishes the inhabitants of this
great continent with a variety of commodities which they could not otherwise have
possessed; some for conveniency and use, some for pleasure, and some for ornament, and
thereby contributes to increase their enjoyments.

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Conclusion of the Mercantile System: Smith's argument about the international political
economy opposed the idea of mercantilism. While the Mercantile System encouraged each country
to hoard gold, while trying to grasp hegemony, Smith argued that free trade eventually makes all
actors better off. This argument is the modern 'Free Trade' argument.

Of the Agricultural Systems: Chapter 9's long title is "Of the Agricultural Systems, or of those
Systems of Political Economy, which Represent the Produce of Land, as either the Sole or the
Principal, Source of the Revenue and Wealth of Every Country".

That system which represents the produce of land as the sole source of the revenue and
wealth of every country has, so far as by that time, never been adopted by any nation, and
it at present exists only in the speculations of a few men of great learning and ingenuity in
France. It would not, surely, be worthwhile to examine at great length the errors of a
system which never has done, and probably never will do, any harm in any part of the
world.

Book V: Of the Revenue of the Sovereign or Commonwealth

Smith postulated four "maxims" of taxation: proportionality, transparency, convenience, and
efficiency. Some economists interpret Smith's opposition to taxes on transfers of money, such as
the Stamp Act, as opposition to capital gains taxes, which did not exist in the 18th century.[23]
Other economists credit Smith as one of the first to advocate a progressive tax.[24][25] Smith wrote,
"The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and
the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion
the principal expense of the rich, and a magnificent house embellishes and sets off to the best
advantage all the other luxuries and vanities which they possess. A tax upon house-rents, therefore,
would in general fall heaviest upon the rich; and in this sort of inequality there would not, perhaps,
be anything very unreasonable. It is not very unreasonable that the rich should contribute to the
public expense, not only in proportion to their revenue, but something more than in that
proportion." Smith believed that an even "more proper" source of progressive taxation than
property taxes was ground rent. Smith wrote that "nothing [could] be more reasonable" than a land
value tax.

Of the Expenses of the Sovereign or Commonwealth: Smith uses this chapter to comment
on the concept of taxation and expenditure by the state. On taxation, Smith wrote,

The subjects of every state ought to contribute towards the support of the government, as
nearly as possible, in proportion to their respective abilities; that is, in proportion to the
revenue which they respectively enjoy under the protection of the state. The expense of
government to the individuals of a great nation is like the expense of management to the
joint tenants of a great estate, who are all obliged to contribute in proportion to their
respective interests in the estate. In the observation or neglect of this maxim consists
what is called the equality or inequality of taxation.

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Smith advocates a tax naturally attached to the "abilities" and habits of each echelon of society.

For the lower echelon, Smith recognised the intellectually erosive effect that the otherwise
beneficial division of labour can have on workers, what Marx, though he mainly opposes Smith,
later named "alienation"; therefore, Smith warns of the consequence of government failing to fulfill
its proper role, which is to preserve against the innate tendency of human society to fall apart.

..."the understandings of the greater part of men are necessarily formed by their ordinary
employments. The man whose whole life is spent in performing a few simple operations,
of which the effects are perhaps always the same, or very nearly the same, has no occasion
to exert his understanding or to exercise his invention in finding out expedients for
removing difficulties which never occur. He naturally loses, therefore, the habit of such
exertion, and generally becomes as stupid and ignorant as it is possible for a human
creature to become. The torpor of his mind renders him not only incapable of relishing or
bearing a part in any rational conversation, but of conceiving any generous, noble, or
tender sentiment, and consequently of forming any just judgment concerning many even
of the ordinary duties of private life... But in every improved and civilized society this is
the state into which the labouring poor, that is, the great body of the people, must
necessarily fall, unless government takes some pains to prevent it."[26]

Under Smith's model, government involvement in any area other than those stated above
negatively impacts economic growth. This is because economic growth is determined by the needs
of a free market and the entrepreneurial nature of private persons. A shortage of a product makes
its price rise, and so stimulates producers to produce more and attracts new people to that line of
production. An excess supply of a product (more of the product than people are willing to buy)
drives prices down, and producers refocus energy and money to other areas where there is a need.
[27]

Of the Sources of the General or Public Revenue of the Society: In his discussion of taxes
in Book Five, Smith wrote:

The necessaries of life occasion the great expense of the poor. They find it difficult to get
food, and the greater part of their little revenue is spent in getting it. The luxuries and
vanities of life occasion the principal expense of the rich, and a magnificent house
embellishes and sets off to the best advantage all the other luxuries and vanities which
they possess. A tax upon house-rents, therefore, would in general fall heaviest upon the
rich; and in this sort of inequality there would not, perhaps, be anything very
unreasonable. It is not very unreasonable that the rich should contribute to the public
expense, not only in proportion to their revenue, but something more than in that
proportion.[28]

He also introduced the distinction between a direct tax, and by implication an indirect tax
(although he did not use the word "indirect"):

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Capitation taxes, so far as they are levied upon the lower ranks of people, are direct taxes
upon the wages of labour, and are attended with all the inconveniences of such taxes.[29]

And further:

It is thus that a tax upon the necessaries of life operates exactly in the same manner as a
direct tax upon the wages of labour.

This term was later used in United States, Article I, Section 2, Clause 3 of the U.S. Constitution,
and James Madison, who wrote much of the Constitution, is known to have read Smith's book.

Of War and Public Debts:

...when war comes [politicians] are both unwilling and unable to increase their [tax]
revenue in proportion to the increase of their expense. They are unwilling for fear of
offending the people, who, by so great and so sudden an increase of taxes, would soon be
disgusted with the war [...] The facility of borrowing delivers them from the
embarrassment [...] By means of borrowing they are enabled, with a very moderate
increase of taxes, to raise, from year to year, money sufficient for carrying on the war, and
by the practice of perpetually funding they are enabled, with the smallest possible
increase of taxes [to pay the interest on the debt], to raise annually the largest possible
sum of money [to fund the war]. ...The return of peace, indeed, seldom relieves them from
the greater part of the taxes imposed during the war. These are mortgaged for the interest
of the debt contracted in order to carry it on.[30]

Smith then goes on to say that even if money was set aside from future revenues to pay for the
debts of war, it seldom actually gets used to pay down the debt. Politicians are inclined to spend the
money on some other scheme that will win the favour of their constituents. Hence, interest
payments rise and war debts continue to grow larger, well beyond the end of the war.

Summing up, if governments can borrow without check, then they are more likely to wage war
without check, and the costs of the war spending will burden future generations, since war debts
are almost never repaid by the generations that incurred them.

Reception and impact

Greater Britain

Intellectuals, critics, and reviewers

The first edition of the book sold out in six months.[31] The printer William Strahan wrote on 12
April 1776 that David Hume said The Wealth of Nations required too much thought to be as

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popular as Edward Gibbon's The History of the Decline and Fall of the
Roman Empire. Strahan also wrote: "What you say of Mr. Gibbon's
and Dr. Smith's book is exactly just. The former is the most popular
work; but the sale of the latter, though not near so rapid, has been
more than I could have expected from a work that requires much
thought and reflection (qualities that do not abound among modern
readers) to peruse to any purpose."[32] Gibbon wrote to Adam
Ferguson on 1 April: "What an excellent work is that with which our
common friend Mr. Adam Smith has enriched the public! An extensive
science in a single book, and the most profound ideas expressed in the
most perspicuous language".[33] The review of the book in the Annual
Register was probably written by Whig MP Edmund Burke.[34] In Edward Gibbon praised The
1791, the English-born radical Thomas Paine wrote in his Rights of Wealth of Nations.

Man that "Had Mr. Burke possessed talents similar to the author 'On
the Wealth of Nations,' he would have comprehended all the parts which enter into, and, by
assemblage, form a constitution."[35]

In 1800, the Anti-Jacobin Review criticized The Wealth of Nations.[36] In 1803, The Times argued
against war with Spain:

She is our best customer; and by the gentle and peaceable stream of commerce, the
treasures of the new world flow with greater certainty into English reservoirs, than it
could do by the most successful warfare. They come in this way to support our
manufactures, to encourage industry, to feed our poor, to pay taxes, to reward
ingenuity, to diffuse riches among all classes of people. But for the full understanding of
this beneficial circulation of wealth, we must refer to Dr. Adam Smith's incomparable
Treatise on the Wealth of Nations.[37]

In 1810, a correspondent writing under the pseudonym of Publicola included at the head of his
letter Smith's line that "Exclusive Companies are nuisances in every respect" and called him "that
learned writer".[38] In 1812, Robert Southey of the Quarterly Review condemned The Wealth of
Nations as a "tedious and hard-hearted book".[36] In 1821, The Times quoted Smith's opinion that
the interests of corn dealers and the people were the same.[39] In 1826, the English radical William
Cobbett criticised in his Rural Rides the political economists' hostility to the Poor Law: "Well,
amidst all this suffering, there is one good thing; the Scotch political economy is blown to the devil,
and the Edinburgh Review and Adam Smith along with it".[40] In 1829, Thomas Carlyle named
Smith as one of the philosophers of the age who taught that "our happiness depends entirely on
external circumstances" and to whose eye "all is well that works quietly."[41]

The Liberal statesman William Ewart Gladstone chaired the meeting of the Political Economy Club
to celebrate the centenary of the publication of The Wealth of Nations.[42] The Liberal historian
Lord Acton believed that The Wealth of Nations gave a "scientific backbone to liberal
sentiment"[43] and that it was the "classic English philosophy of history".[44]

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Public policy
Smith's biographer John Rae contended that The Wealth of Nations shaped government policy
soon after it was published.[45]

18th century
In 1777, in the first budget after the book was published, Prime Minister Lord North got the idea
for two new taxes from the book: one on man-servants and the other on property sold at auction.
The budget of 1778 introduced the inhabited house duty and the malt tax, both recommended by
Smith. In 1779, Smith was consulted by politicians Henry Dundas and Lord Carlisle on the subject
of giving Ireland free trade.[45]

The Wealth of Nations was first mentioned in Parliament by

the Whig leader Charles James Fox on 11 November 1783:

There was a maxim laid down in an excellent book

upon the Wealth of Nations which had been
ridiculed for its simplicity, but which was
indisputable as to its truth. In that book it was
stated that the only way to become rich was to
manage matters so as to make one's income exceed
one's expenses. This maxim applied equally to an
individual and to a nation. The proper line of
conduct therefore was by a well-directed economy
to retrench every current expense, and to make as
Charles James Fox was the first
person to mention The Wealth of large a saving during the peace as possible.[46]
Nations in Parliament.

However Fox once told Charles Butler sometime after 1785 that
he had never read the book and that "There is something in all these subjects which passes my
comprehension; something so wide that I could never embrace them myself nor find any one who
did."[47] When Fox was dining with Lord Lauderdale in 1796, Lauderdale remarked that they knew
nothing of political economy before Adam Smith wrote. "Pooh," replied Fox, "your Adam Smiths
are nothing, but" (he added, turning to the company) "that is his love; we must spare him there."
Lauderdale replied: "I think he is everything", to which Fox rejoined: "That is a great proof of your
affection".[47] Fox also found Adam Smith "tedious" and believed that one half of The Wealth of
Nations could be "omitted with much benefit to the subject".[48]

The Wealth of Nations was next mentioned in Parliament by Robert Thornton MP in 1787 to
support the Commercial Treaty with France. In the same year George Dempster MP referenced it
in the debate on the proposal to farm the post-horse duties and in 1788 by a Mr. Hussy on the
Wool Exportation Bill.[46]

The prime minister, William Pitt, praised Smith in the House of Commons on 17 February 1792: "…
an author of our own times now unfortunately no more (I mean the author of a celebrated treatise
on the Wealth of Nations), whose extensive knowledge of detail, and depth of philosophical

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research will, I believe, furnish the best solution to every question connected with the history of
commerce, or with the systems of political economy."[49] In the same year it was quoted by Samuel
Whitbread MP and Fox (on the division of labour) in the debate on the armament against Russia
and also by William Wilberforce in introducing his Bill against the slave trade. The book was not
mentioned in the House of Lords until a debate in 1793 between Lord Lansdowne and Lord
Loughborough about revolutionary principles in France.[50] On 16 May 1797, Pitt said in the debate
on the suspension of cash payments by the Bank of England that Smith was "that great author" but
his arguments, "though always ingenious", were "sometimes injudicious".[51] In 1798, Sir John
Mitford, the Solicitor-General, cited the book in his criticism of bills of exchange given in
consideration of other bills.[52]

During a debate on the price of corn in 1800 Lord Warwick said:

There was hardly any kind of property on which the law did not impose some restraints
and regulations with regard to the sale of them, except that of provisions. This was
probably done on the principles laid down by a celebrated and able writer, Doctor
Adam Smith, who had maintained that every thing ought to be left to its own level. He
knew something of that Gentleman, whose heart he knew was as sound as his head; and
he was sure that had he lived to this day and beheld the novel state of wretchedness to
which the country was now reduced ...; that Great Man would have reason to blush for
some of the doctrines he had laid down. He would now have abundant opportunities of
observing that all those artificial means of enhancing the price of provisions, which he
had considered as no way mischievous, were practised at this time to a most alarming
extent. He would see the Farmer keeping up his produce while the poor were labouring
under all the miseries of want, and he would see Forestallers, Regraters, and all kinds of
Middle-men making large profits upon it.[53]

Lord Grenville replied:

[W]hen that great man lived, ... his book was first published at a period, previous to
which there had been two or three seasons of great dearth and distress; and during
those seasons there were speculators without number, who ... proposed that a certain
price should be fixed on every article: but all their plans were wisely rejected, and the
Treatise on the Wealth of Nations, which came forward soon after, pointed out in the
clearest light how absurd and futile they must have been.[53]

19th century
The Radical MP Richard Cobden studied The Wealth of Nations as a young man; his copy is still in
the library of his home at Dunford House and there are marginal notes on the places where Smith
criticizes British colonial policies. There are none on the passage about the invisible hand.[54]
Cobden campaigned for free trade in his agitation against the Corn Laws. In 1843, Cobden quoted
Smith's protest against the "plain violation of the most sacred property" of every man derived from
his labour.[55] In 1844, he cited Smith's opposition to slave labour[56] and claimed that Smith had

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been misrepresented by protectionists as a monopolist.[57] In

1849, Cobden claimed that he had "gone through the length
and breadth of this country, with Adam Smith in my hand, to
advocate the principles of Free Trade." He also said he had
tried "to popularise to the people of this country, and of the
Continent, those arguments with which Adam Smith ... and
every man who has written on this subject, have demonstrated
the funding system to be injurious to mankind."[58]

Cobden believed it to be morally wrong to lend money to be

spent on war. In 1849, when The Times claimed political
economists were against Cobden on this, Cobden wrote: "I can
quote Adam Smith whose authority is without appeal now in
intellectual circles, it gives one the basis of science upon which The Wealth of Nations influenced
to raise appeals to the moral feelings." [59] In 1850, when the Richard Cobden.
Russian government attempted to raise a loan to cover the
deficit brought about by its war against Hungary, Cobden said:
"I take my stand on one of the strongest grounds in stating that Adam Smith and other great
authorities on political economy are opposed to the very principle of such loans."[60] In 1863,
during Cobden's dispute with The Times over its claims that his fellow Radical John Bright wanted
to divide the land of the rich amongst the poor, Cobden read to a friend the passage in the Wealth
of Nations which criticized primogeniture and entail. Cobden said that if Bright had been as plain-
speaking as Smith, "how he would have been branded as an incendiary and Socialist".[61] In 1864,
Cobden proclaimed, "If I were five-and-twenty or thirty, ... I would take Adam Smith in hand, and I
would have a League for free trade in Land just as we had a League for free trade in Corn. You will
find just the same authority in Adam Smith for the one as for the other."[62]

United States
After the conquest of New France in 1760 during the French and Indian War, Charles Townshend
suggested that the American colonists provide help to pay for the war debt by paying an additional
tax on tea. During this time, Adam Smith was working for Townshend and developed a
relationship with Benjamin Franklin, who played a vital role in the American Revolution three
months after Smith's The Wealth of Nations book was released.[63]

James Madison, in a speech given in Congress on 2 February 1791, cited The Wealth of Nations in
opposing a national bank: "The principal disadvantages consisted in, 1st. banishing the precious
metals, by substituting another medium to perform their office: This effect was inevitable. It was
admitted by the most enlightened patrons of banks, particularly by Smith on the Wealth of
Nations."[64] Thomas Jefferson, writing to John Norvell on 14 June 1807, claimed that on "the
subjects of money & commerce, Smith's Wealth of Nations is the best book to be read, unless Say's
Political Economy can be had, which treats the same subject on the same principles, but in a
shorter compass & more lucid manner."[65]

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Modern evaluation
With 36,331 citations, it is the second most cited book in economics published before 1950, behind
Karl Marx's Das Kapital.[66]

George Stigler attributes to Smith "the most important

substantive proposition in all of economics" and
foundation of resource-allocation theory. It is that, under
competition, owners of resources (labour, land, and
capital) will use them most profitably, resulting in an equal
rate of return in equilibrium for all uses (adjusted for
apparent differences arising from such factors as training,
trust, hardship, and unemployment).[67] He also describes
Smith's theorem that "the division of labour is limited by 1938 mural "The Wealth of the Nation" by
the extent of the market" as the "core of a theory of the Seymour Fogel is an interpretation of the
functions of firm and industry" and a "fundamental theme of Social Security.
principle of economic organisation."[68]

Paul Samuelson finds in Smith's pluralist use of supply and demand—as applied to wages, rents,
and profit—a valid and valuable anticipation of the general equilibrium modelling of Walras a
century later. Moreover, Smith's allowance for wage increases in the short and intermediate term
from capital accumulation and invention added a realism missed later by Malthus and Ricardo in
their propounding a rigid subsistence-wage theory of labour supply.[69]

In noting the last words of the Wealth of Nations,

If any of the provinces of the British empire cannot be made to contribute towards the
support of the whole empire, it is surely time that Great Britain should free herself from
the expence of defending those provinces in time of war, and of supporting any part of
their civil or military establishments in time of peace, and endeavour to accommodate her
future views and designs to the real mediocrity of her circumstances.[70]

Ronald Coase suggests that if Smith's earlier proposal of granting colonies representation in the
British parliament proportional to their contributions to public revenues had been followed, "there
would have been no 1776, … America would now be ruling England, and we [in America] would be
today celebrating Adam Smith not simply as the author of the Wealth of Nations, but hailing him
as a founding father."[71]

Mark Blaug argues that it was Smith's achievement to shift the burden of proof against those
maintaining that the pursuit of self-interest does not achieve social good. But he notes Smith's
relevant attention to definite institutional arrangements and process as disciplining self-interest to
widen the scope of the market, accumulate capital, and grow income.[72]

Economic anthropologist David Graeber argues that throughout antiquity one can identify many

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different systems of credit and later monetary exchange, drawing evidence for his argument from
historical and also ethnographical records, that the traditional explanation for the origins of
monetary economies from primitive bartering systems, as laid out by Adam Smith, does not find
empirical support.[73] The author argues that credit systems developed as means of account long
before the advent of coinage around 600 BCE, and can still be seen operating in non-monetary
economies. The idea of barter, on the other hand, seems only to apply to limited exchanges
between societies that had infrequent contact and often in a context of ritualised warfare,
rendering its conceptualisation among economists as a myth.[74] As an alternative explanation for
the creation of economic life, the author suggests that it originally related to social currencies,
closely related to non-market quotidian interactions among a community and based on the
"everyday communism" that is based on mutual expectations and responsibilities among
individuals. This type of economy is, then, contrasted with the moral foundations of exchange
based on formal equality and reciprocity (but not necessarily leading to market relations) and
hierarchy, based on clear inequalities that tend to crystallise in customs and castes.[74]

See also
The Theory of Moral Sentiments (1759), Adam Smith's other major work
The National Gain, a pamphlet by Finnish–Swedish economist and politician Anders Chydenius
which preceded The Wealth of Nations and which had similar ideas.

References

Citations
1. "The Wealth of Nations | Summary, Themes, Significance, & Facts | Britannica" (https://www.bri
tannica.com/topic/the-Wealth-of-Nations). www.britannica.com. 3 August 2024. Retrieved
21 September 2024.
2. O'Rourke, P. J. ""On 'The Wealth of Nations.'"" (https://www.nytimes.com/2007/01/07/books/ch
apters/0107-1st-orou.html). New York Times. 7 January 2005. 18 October 2018.
3. Sutherland, Kathryn (2008) [1776]. "Note on the Text" (https://books.google.com/books?id=Sw
FYIf_E1CIC&pg=PA31). An Inquiry into the Nature and Causes of the Wealth of Nations: A
Selected Edition. By Smith, Adam. Oxford University Press. p. 31. ISBN 978-0191504280.
4. See Smith, Adam (1776). An Inquiry into the Nature and Causes of the Wealth of Nations (http
s://books.google.com/books?id=C5dNAAAAcAAJ&pg=PP7). Vol. 1 (1 ed.). London: W.
Strahan. ISBN 978-1537480787. Retrieved 7 December 2012., volume 2 (https://books.googl
e.com/books?id=mt1SAAAAcAAJ&pg=PP4) via Google Books
5. I. Ousby ed, The Cambridge Guide to Literature in English (Cambridge 1995) p. 1,000
6. K. Sutherland ed., Wealth of Nations (Oxford 2008) pp. 295, 573
7. K. Sutherland ed., Wealth of Nations (Oxford 2008) pp. i, xiv
8. K. Sutherland ed., Wealth of Nations (Oxford 2008) pp. xxix–xxxi
9. K. Sutherland ed., Wealth of Nations (Oxford 2008) pp. xxi–xxii

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10. See Smith, Adam (1778). An Inquiry into the Nature and Causes of the Wealth of Nations (http
s://books.google.com/books?id=KpWg1DYxRTwC&q=editions%3AhdVgPAzxgfcC&pg=PP5).
Vol. 1 (2 ed.). London: W. Strahan; T. Cadell.; Smith, Adam (1778). An Inquiry into the Nature
and Causes of the Wealth of Nations (https://books.google.com/books?id=jF1eAAAAcAAJ&q=
editions%3AhdVgPAzxgfcC&pg=PP7). Vol. 2 (2 ed.). London: W. Strahan; T. Cadell. via
Google Books
11. See Smith, Adam (1789). An Inquiry into the Nature and Causes of the Wealth of Nations (http
s://books.google.com/books?id=PAQMAAAAYAAJ&q=editions%3AHkmbBXCA1kcC&pg=PR1).
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0orou), Books That Changed the World, Atlantic Monthly Press, ISBN 978-0871139498

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oks/3300) at Project Gutenberg
Facsimile of the first edition, from the Internet Archive: Vol. I (https://archive.org/details/inquiryin
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