Adam Smith

Topics: Employment, Capital accumulation, Division of labour Pages: 2 (421 words) Published: May 29, 2013
Adam Smith Outline:

I. The Division of Labour:
a. is not originally the effect of any human wisdom, which foresees and intends that general opulence to which it gives occasion.
b. consequence of a certain propensity in human nature which has view no such extensive utility
c. the propensity to truck, barter, and exchange one thing for another
d. it is common to all men, and to be found in no other race of animals, which seem to know neither this nor any other species of contracts
e. in civilized society, men stand out at all times in need of the cooperation and assistance of great multitudes, while his whole life is scarce sufficient to gain the friendship of a few persons.

f. 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.
g. the difference of natural talents in different men is, in reality, much less than we are aware of; and the very different genius which appears to distinguish men of different professions.

II. Private Interest and Public Benefit:
a. every man’s interest would prompt him to seek the advantageous and to shun the disadvantageous employment
b. every prodigal appears to be a public enemy, and every frugal man a public benefactor
c. the effects of misconduct are often the same as those of prodigality
d. to diminish the funds destined for the maintenance of productive labour
e. the principle which prompts to save, is the desire of bettering our condition, a desire which, though generally calm and dispassionate, comes with us from the womb, and never leaves us till we go into the grave.

f. it is only for the sake of profit that any man employs a capital in the support of industry
g. the annual revenue of every society is always precisely equal to the exchangeable value of the whole annual produce of its industry
h. what is the species of demoestic industry which his capital can employ, and of which the produce is likely...
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