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AN INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS
by Adam Smith
1776
INTRODUCTION AND PLAN OF THE WORK
THE annual labour of every nation is the fund which
originally supplies it with all the necessaries and conveniences
of life which it annually consumes； and which consist always
either in the immediate produce of that labour； or in what is
purchased with that produce from other nations。
According therefore as this produce； or what is purchased
with it； bears a greater or smaller proportion to the number of
those who are to consume it； the nation will be better or worse
supplied with all the necessaries and conveniences for which it
has occasion。
But this proportion must in every nation be regulated by two
different circumstances； first； by the skill； dexterity； and
judgment with which its labour is generally applied； and；
secondly； by the proportion between the number of those who are
employed in useful labour； and that of those who are not so
employed。 Whatever be the soil； climate； or extent of territory
of any particular nation； the abundance or scantiness of its
annual supply must； in that particular situation； depend upon
those two circumstances。
The abundance or scantiness of this supply； too； seems to
depend more upon the former of those two circumstances than upon
the latter。 Among the savage nations of hunters and fishers；
every individual who is able to work； is more or less employed in
useful labour； and endeavours to provide； as well as he can； the
necessaries and conveniences of life； for himself； or such of his
family or tribe as are either too old； or too young； or too
infirm to go a hunting and fishing。 Such nations； however； are so
miserably poor that； from mere want； they are frequently reduced；
or； at least； think themselves reduced； to the necessity
sometimes of directly destroying； and sometimes of abandoning
their infants； their old people； and those afflicted with
lingering diseases； to perish with hunger； or to be devoured by
wild beasts。 Among civilised and thriving nations； on the
contrary； though a great number of people do not labour at all；
many of whom consume the produce of ten times； frequently of a
hundred times more labour than the greater part of those who
work； yet the produce of the whole labour of the society is so
great that all are often abundantly supplied； and a workman； even
of the lowest and poorest order； if he is frugal and industrious；
may enjoy a greater share of the necessaries and conveniences of
life than it is possible for any savage to acquire。
The causes of this improvement； in the productive powers of
labour； and the order； according to which its produce is
naturally distributed among the different ranks and conditions of
men in the society； make the subject of the first book of this
Inquiry。
Whatever be the actual state of the skill； dexterity； and
judgment with which labour is applied in any nation； the
abundance or scantiness of its annual supply must depend； during
the continuance of that state； upon the proportion between the
number of those who are annually employed in useful labour； and
that of those who are not so employed。 The number of useful and
productive labourers； it will hereafter appear； is everywhere in
proportion to the quantity of capital stock which is employed in
setting them to work； and to the particular way in which it is so
employed。 The second book； therefore； treats of the nature of
capital stock； of the manner in which it is gradually
accumulated； and of the different quantities of labour which it
puts into motion； according to the different ways in which it is
employed。
Nations tolerably well advanced as to skill； dexterity； and
judgment； in the application of labour； have followed very
different plans in the general conduct or direction of it； those
plans have not all been equally favourable to the greatness of
its produce。 The policy of some nations has given extraordinary
encouragement to the industry of the country； that of others to
the industry of towns。 Scarce any nation has dealt equally and
impartially with every sort of industry。 Since the downfall of
the Roman empire； the policy of Europe has been more favourable
to arts； manufactures； and commerce； the industry of towns； than
to agriculture； the industry of the country。 The circumstances
which seem to have introduced and established this policy are
explained in the third book。
Though those different plans were； perhaps； first introduced
by the private interests and prejudices of particular orders of
men； without any regard to； or foresight of； their consequences
upon the general welfare of the society； yet they have given
occasion to very different theories of political economy； of
which some magnify the importance of that industry which is
carried on in towns； others of that which is carried on in the
country。 Those theories have had a considerable influence； not
only upon the opinions of men of learning； but upon the public
conduct of princes and sovereign states。 I have endeavoured； in
the fourth book； to explain； as fully and distinctly as I can；
those different theories； and the principal effects which they
have produced in different ages and nations。
To explain in what has consisted the revenue of the great
body of the people； or what has been the nature of those funds
which； in different ages and nations； have supplied their annual
consumption； is the object of these four first books。 The fifth
and last book treats of the revenue of the sovereign； or
commonwealth。 In this book I have endeavoured to show； first；
what are the necessary expenses of the sovereign； or
commonwealth； which of those expenses ought to be defrayed by the
general contribution of the whole society； and which of them by
that of some particular part only； or of some particular members
of it： secondly； what are the different methods in which the
whole society may be made to contribute towards defraying the
expenses incumbent on the whole society； and what are the
principal advantages and inconveniences of each of those methods：
and； thirdly and lastly； what are the reasons and causes which
have induced almost all modern governments to mortgage some part
of this revenue； or to contract debts； and what have been the
effects of those debts upon the real wealth； the annual produce
of the land and labour of the society。
BOOK ONE
OF THE CAUSES OF IMPROVEMENT IN THE PRODUCTIVE POWERS。 OF LABOUR；
AND OF THE ORDER ACCORDING TO WHICH ITS。 PRODUCE IS NATURALLY
DISTRIBUTED AMONG THE DIFFERENT RANKS OF THE PEOPLE。
CHAPTER I
Of the Division of Labour
THE greatest improvement in the productive powers of labour；
and the greater part of the skil