Chapter 47 of 74 · Lectures on Justice, Police, Revenue and Arms by Adam Smith
[§ 6. That the Division of Labour must be proportioned to the Extent of Commerce.]
From all that has been said we may observe that the division of labour must always be proportioned to the extent of commerce1. If ten people only want a certain commodity, the manufacture of it will never be so divided as if a thousand wanted it. Again, the division of labour, in order to opulence, becomes always more perfect by the easy method of conveyance in a country. If the road be infested with robbers, if it be deep and conveyance not easy, the progress of commerce must be stopped. Since the mending of roads in England forty or fifty years ago, its opulence has increased extremely. Water carriage is another convenience, as by it 300 ton can be conveyed at the expense of the tear and wear of the vessel, and the wages of five or six men, and that too in a shorter time than by a hundred wagons which will take six horses and a man each2. Thus the division of labour is the great cause of the increase of public opulence, which is always proportioned to the industry of the people3, and not to the quantity of gold and silver, as is foolishly imagined, and the industry of the people is always proportioned to the division of labour.
Having thus shown what gives occasion to public opulence, in farther considering this subject we propose to consider:
First, what circumstances regulate the price of commodities:
Edition: current; Page: [173]Secondly, money in two different views, first as the measure of value, and then as the instrument of commerce:
Thirdly, the history of commerce, in which shall be taken notice of the causes of the slow progress of opulence, both in ancient and modern times, which causes shall be shown either to affect agriculture or arts and manufactures:
Lastly, the effects of a commercial spirit, on the government, temper, and manners of a people, whether good or bad, and the proper remedies. Of these in order.
Lectures on Justice, Police, Revenue and Arms
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