Rent.zip
Smith covers the topic of rent of land in chapter eleven, which is the final chapter of the first book. In opening the chapter, he reveals that he sees the rent of land as a monopoly price:The rent of land, therefore, considered as the price paid for the use of land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or what he can afford to take; but to what the farmer can afford to give.As usual, let’s give a...
Rent.zip
Smith covers the topic of rent of land in chapter eleven, which is the final chapter of the first book. In opening the chapter, he reveals that he sees the rent of land as a monopoly price:The rent of land, therefore, considered as the price paid for the use of land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or what he can afford to take; but to what the farmer can afford to give.As usual, let’s give a...
Profits.zip
The increase of stock, which raises wages, tends to lower profit.If you’ve gotten this far, you may have picked up on some general themes that Adam Smith writes about. Two of the most prominent are the interrelated concepts of supply and demand and competition. For example, we discussed how some employments (e.g., garbageman) were naturally less agreeable and thus were more supply-constrained and wages were less bid down by competition than other employments. Profits of stock are another exam...
Profits.zip
The increase of stock, which raises wages, tends to lower profit.If you’ve gotten this far, you may have picked up on some general themes that Adam Smith writes about. Two of the most prominent are the interrelated concepts of supply and demand and competition. For example, we discussed how some employments (e.g., garbageman) were naturally less agreeable and thus were more supply-constrained and wages were less bid down by competition than other employments. Profits of stock are another exam...
Wages of Labor.zip
This post will attempt to answer the question ‘why are people paid what they are for their labor?’ The content is compressed down from chapters 8, Of the Wages of Labour, and 10, Of Wages and Profit in the different Employments of Labour and Stock). All else being equal and assuming ‘perfect liberty,’ an hour of labor in one trade should be rewarded the same as an hour in another. For example, if in Detroit the General Motors plant offers workers $15 per hour, it’s likely that the Ford plant ...
Wages of Labor.zip
This post will attempt to answer the question ‘why are people paid what they are for their labor?’ The content is compressed down from chapters 8, Of the Wages of Labour, and 10, Of Wages and Profit in the different Employments of Labour and Stock). All else being equal and assuming ‘perfect liberty,’ an hour of labor in one trade should be rewarded the same as an hour in another. For example, if in Detroit the General Motors plant offers workers $15 per hour, it’s likely that the Ford plant ...
Commodities.zip
Author's note: of the chapters of the Wealth of Nations, these are some of the most lucid and concise. If you have the time to read direct from the source, I recommend it. Else, there's this post, which will quote some of the most lucid passages of these most lucid chapters. In this post, I have quoted heavily from the source. This is in line with my goal: to bring insight for the reader and myself. Adam Smith explains some things very poorly; in these times, it makes sense to give ...
Commodities.zip
Author's note: of the chapters of the Wealth of Nations, these are some of the most lucid and concise. If you have the time to read direct from the source, I recommend it. Else, there's this post, which will quote some of the most lucid passages of these most lucid chapters. In this post, I have quoted heavily from the source. This is in line with my goal: to bring insight for the reader and myself. Adam Smith explains some things very poorly; in these times, it makes sense to give ...
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