Work

An Inquiry into the Nature and Causes of the Wealth of Nations

Adam Smith·English

About this text

Published in 1776. The founding text of modern economics. Smith explains how the division of labor, free markets, and the self-interest of individuals combine to create prosperity without anyone intending it.

The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is any where directed, or applied, seem to have been the effects of the division of labour.

To take an example, the trade of the pin-maker. A person who has not been educated to this business could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty. But in the way in which this business is now carried on, it is divided into a number of branches. One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head; to make the head requires two or three distinct operations. Ten men, therefore, could, when they exerted themselves, make among them upwards of forty-eight thousand pins in a day.

It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.

Full text not yet available.

More from this thinker