At first glance, Adam Smith’s “The Wealth of Nations” may not appear to fit in with the other texts in this series. It doesn’t offer a particular framework of ideas on life or existence, and is celebrated as a political economics text. However, the descriptions of how the labor market works are predicated on ideas of personal freedom predicated and therefore, carry the weight of significance. If we keep in mind an idea of what the late 18th century was like, suddenly the gravity of Smith’s ideas hit you; he is outlining the beginning of a new age.
As Smith details, capitalism is built upon the premise of individual freedom; that freedom allows the market to influence pricing, determine which products fail or succeed, and keeps producers accountable, as they serve their own interests and those of their customers by creating ever-improving products.
This relates to our series nicely, as Emerson is also an advocate of individual rights, urging us to personally seek ways to live side-by-side with nature, rather than attempting to beat it into submission. The goals of neither writer could be accomplished without the foundation of free will on which both “Wealth” and “Scholar” both rest.
This notion of freedom, for every citizen was, of course, quite revolutionary at the time. This text doubled down on that freedom by advocating that producers could amass wealth, by working towards their own interests, thus providing goods for consumers, fulfilling their interests, and in concert, create profits which would help the entire nation. The medieval notion that wealth was for the king to distribute as he saw fit is defied. It epitomizes the very modern notion that individuals can and do make differences in society. It is for this reason that this little book on economics is considered a philosophical classic.
“The Wealth of Nations” clearly outlines that a nation is dependent upon its workforce to succeed fiscally. Smith describes the relationship between the proportion of workers to non-workers and the skill and speed of said workers as regulators of the nation’s production. He also describes the differences and influences of market and natural prices. He goes on to break down what components create prices; namely, wages, profit, and rent of land. Published in 1776, the text at the time was an introduction modern ideas. For modern readers, it shows the thinking behind the uniquely American approach to success.
Ed. note: This is post is part of a series looking at the three schools of philosophy for perspectives on relationships in our modern world. Inspired by Emerson’s “The American Scholar,” we are exploring timeless wisdom which endures to inform our approaches to learning, relationships and leadership. Click here for all the posts in this series.
