Title: PDP of “The Wealth of Nations” (excerpts)
Author Biography:
Adam Smith, the author of “The Wealth of Nations” was a social philosopher who enjoyed writing about the political economy, especially capitalism. The “bible of capitalism” is what Smith claims to be the first political economy. Smith wrote “The Wealth of Nations” to express his opinions on wealth not only being about silver and gold, but lands and its productivity. Smith wrote this before the Industrial Revolution and claimed that capitalist economies are more beneficial for society. Overall, Smith’s book was influential and continues to be despite his death at the age of 67.
Date/Context:
“The Wealth of Nations” was written in 1776, and this was before the Industrial Revolution. This is important to know because Smith’s book talks about ways to improve the economy and manufacturers, and the Industrial Revolution was when all the businesses started to take off and create mass production. “The Wealth of Nations” was based upon the role of government in an economy and Britain’s debate over the fact.
Summary:
Adam Smith writes that one of the most efficient and beneficial improvements that could be made to the manufacturing industry would be the division of labor. Smith supplies a great example in his book, but ultimately it says that it is better for multiple workers to contribute to the creation of one product than it is for one worker to create a single product. Overtime, more products would be made if all the workers collaborated and work together. He goes on to explain how this process would exchange the power of the workers. The power depends on the market because with a small market “no person… [will] dedicate himself entirely to one employment.” The division of labor changes how people view wealth because the employees now depend on other employees to bring in money. Smith continues to describe the commodities made by those employees and how their demand in markets change constantly. The issue than come with which business will appeal to more consumers, and the answer would be the business that sells the product for less. Competition amongst businesses continues until the demand for the product decreases and then the businesses go back to selling the product for the same price, roughly. In addition, Smith claims that wealth is not about the silver and gold quantity, but the amount of productive land that can create more commerce. Smith ends the excerpts with stating that countries should buy products from foreign place if it is cheaper than making in locally. Overall, Smith makes his capitalism claim based on reasons and opinions that can be appealing or disagreeable.
Quotation:
“The greatest improvement in the productive power of labour, and the greater part of the skill, dexterity, and judgment with which it is anywhere directed, or applied, seem to have been the effects of the division of labour.”
Identifying Characteristics:
ReplyDeleteThis document provides a brief introduction that describes the background of the author, and summarizes his position on the topic. This intro states that Smith wrote this content in 1776. This is evident in the writing based on the fact there is no mention of modern technology in the descriptions of industry. Smith explained the industry aspect of this topic by describing the process of making pins, which is currently a fully automated process that requires little to no human labor. Furthermore, he uses town markets to make each of his points and at no point addresses the application of his arguments within a modern day city. Moreover, it quickly becomes clear that he is British based on his spelling of labor (labour). Finally, the time period of the writing is portrayed by his description of precious metals as a sign of a country's wealth. This idea is reflective of much older time periods and holds little relevance in modern society, as countries do not often use precious metals as currency like many did in the past
Constructive Feedback:
Shannon' summary of the excerpts by Adam Smith successfully encompasses the key ideas of each section of the reading. She addresses an important idea regarding the self regulation of free markets by pointing out the dependence of employers on their employees to accumulate wealth; however, the summary does not touch upon one of Smith's main points that labor is the true measure of wealth and one individual cannot thrive in society without the labor of others. Smith explains that, "one must be rich or poor according to the quantity of labor which he can command, or which he can afford to purchase." This suggests an even deeper interdependence of society than the summary addresses in the sense that it nearly equates complete self-sufficiency with poverty. Moreover, the summary clearly explains Smith's point about the division of labor and its effects on society, which was a central idea for his argument. Lastly, in her analysis of Smith's point about the effect of supply and demand on the economy, she does not denote the periodization of this article and its impact on the point that Smith makes in his writing. In the excerpts, (which were written in 1776) Smith uses the example of the increased market prices during the time of a town blockade or famine. These are not very modern applications, and while they can be related to similar instances in today's society, they do not entirely equate.