The Nature and Causes of the Wealth of Nations, Adam Smith Essay

The character and Causes of the Wealth of Nations, Adam Smith - Essay ExampleOne of the essential ideas in The Wealth of Nations is the voice of sweat. tally to Smith, the division of labour occurs due to the increase in production rather than any separate factor. The division of labour, however, understructure only be beneficial if a nation has more industry in place. The obligate argues that agriculture does not produce a larger division of labour as compared to industry. According to Smith, the division of labor arises not from the innate wisdom of the masses, but due to a human object to barter. Smith, therefore, argues that the reasons for the specialization are due to the differences in natural talent rather than any other factor. The book also discusses the limitations of the division of labour and indicates that the division of labour is really limited by the extent of the trade. The general limited opportunities in the market actually result into the lack of labou r specialization. If a market can be expanded, the specialization of labour can further occur, and the society can benefit from more handy workers. In 1778, Smith was appointed the Commissioner to the Customs. This experience sharpened his understanding of trading and of the manner how exchange actually took place between two parties. He designed and developed policies and methods to curb smuggling so that overall revenues could be increased. He remained single during his entire life and died in Edinburgh on July 19, 1790 (Smith, 1761 a). He was a merciless advocate of individualism, and his interests ranged from natural theology, ethics, and jurisprudence, to economics, which may explain the cause as to why he wrote The Theory of moral Sentiments (Smith, 1761 a). He denied self-love as a principle which could never be virtuous. He thought that generosity and self-interest were complementary. He once expressed that it was not from the benevolence of the butcher, the brewer, or th e baker, that a worker could call dinner, however, in fact, each agent worked in their own self-interest (Smith, 1761 a). He also discussed the concept of notes and how various commodities were used as money. He reviewed the origins of money and how different nations actually used it in baffle to create a medium for exchange. He also speculated how metals were used as money and how nations actually invented refreshed methods of developing money with the purpose of creating an exchange value. Further, he also discussed nominal prices for commodities as well as prices for labour. He also outlined how prices were actually determined and what were some of their components. Smith was in favour of labour and indicated that labour was the means by which an individual earned wages in a competitive market a labourer must produce something others valued to earn (Smith, 1761 a). The Wealth of Nations reveals that nature and causes of the nations prosperity come from the increasing of the l abour division to systematize its production (Smith, 1761 a). Smith professed that individual would site resources, e.g. land and labour, to earn the highest possible bribe of investment, but it must yield to the equal rate of return (Smith, 1977 b). For classical economists this was the core of Smiths proposition of economic theory. Smith advocated equality of returns to explain the differences of salaries establish on the knowledge, skills,