The Wealth Of The Nations Essay

943 Words Nov 12th, 2015 4 Pages
Adam Smith wrote about consumption in his book in the wealth of the nations. What he said about consumption was that consumption is the purpose of all production. What he also said about consumption was that the interest of the producer thought to be attended only as far as it may be necessary for promoting the customer. When Smith was publishing the book the wealth of the nation consumption wasn’t a common thought at the time. Consumption is now much more of a common thought than back when Smith was publishing the book. This shows that Smith again has influenced the way we do business by writing theories in his book that hold for the future. The idea of purpose of production to build up treasure which is consumption hadn’t occurred to the human brain until Smith decided to write a theory on consumption in his book. When Smith talked about consumption he meant purpose of all production to make something useful of course.

Another way that Adam Smith had influenced the way we do business is bringing up the idea of the free market or also known as free trade in his book. In his book Smith argues that free trade, rather than diminishing the wealth of that particular nation the free trade increases it because it provides more occasion for labour. Therefore this provides more occasion to create wealth. Whether limited trade keeps wealth relatively within the borders constantly. The more trade that a country engages, the wider the free market will be. Free market is a big part of…

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