Essay on adam smith

1342 Words 6 Pages
Views of Adam Smith

     Adam Smith had many views that helped in making the world what it is today. I can’t imagine what the world would be like if there weren’t thinkers like Adam Smith. Our career as Pharmacists is a great example of this. What would we be working so hard for if we made the same amount of money as a trash man? He had many other views that were just as important.
Adam Smith believed that a nation's wealth was not derived by how much they had in resources, or in an exchangeable commodity, but rather by the labor that its residents produce. "The annual labor of every nation is the fund which originally supplies it with all the necessaries and conveniences which it annually consumes."
…show more content…
To produce the quantity, he must either himself labor or hire people to do the labor for him, and pay them wages. Finally, the producer adds on a profit that will also be used to pay for the upkeep of equipment. Originally, the laborer received the full value of the price. However, this state could not last because of the appropriation of land and the accumulation of stock.

He believed that wages were very important and beneficial. The wage a laborer receives is the replacement for the profit he would gain by selling the product he produces. In this manner, the laborer is spared the responsibility of procuring materials and equipment, and of having to try to market the product. Instead, he gains cash for his labor. Wages are affected by many factors. The first is the agreeableness of the employments themselves. The second is the difficulty and expense of learning the employment. The third is the constancy of employment in them. The fourth is the amount of trust, which must be placed in the employees. Finally, the fifth is the probability of success in them.
Smith decided that wages must be at least enough for two people to live on, so that the workers can raise a family to keep the workforce going. The higher the wage is, the more likely a working family is to have more children, because children become a benefit. He believed that wages are people's incentive to work harder, since a man's self-love will cause him to work harder so that he

Related Documents