Sunday, 27 September 2015

Labour

"Every man is rich or poor according to the degree in which he can afford to enjoy the necessaries, conveniences, and amusements of human life.

But after the division of labour has once thoroughly taken place, it is but a very small part of these with which a man’s own labour can supply him.

The far greater part of them he must derive from the labour of other people, and he must be rich or poor according to the quantity of that labour which he can command, or which he can afford to purchase.

The value of any commodity, therefore, to the person who possesses it, and who means not to use or consume it himself, but to exchange if for other commodities, is equal to the quantity of labour which it enables him to purchase or command.

Labour, therefore, is the real measure of the exchangeable value of all commodities."

Adam Smith. (1723–1790). Wealth of Nations. Chapter V. Of the Real and Nominal Price of Commodities, or of Their Price in Labour, and Their Price in Money

2 comments:

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    1. It is true and at the same time I could easily argue with him as to division of natural resources and natural abilities to work.. but in his general context, he does have a point.

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