The Wealth of Nations — Adam Smith

This book was such a tiresome read that I finished 4 other books before completing this one.

Started to take toll on me with so much unnecessary explanation which made no sense. Sometimes cringe worthy!

Adam Smith was one of the few who wanted the economic cycle to run itself. Hence he was in full support of market setting the momentum. But can we give such liberty to markets? With inflation, resources cramped within few hands and power politics his notion have failed to a large extend in today’s world. As the richer are getting rich with each day whereas the poor are left on their mercy which never comes.

But nonetheless this book gave certain valuable parameters which can be used and revised to make things better. According to him abundance or scantiness depend upon two circumstances:

1. By skill, dexterity and judgement with which it’s labor is applied
2. By the proportion between the employer and unemployed

Wages, rent and profit are the three original sources of all revenues and exchangeable value. Altogether there are 3 classes who contribute towards the annual produce of the land and labour:

1. The proprietors of land
2. Cultivators, farmers and country labourers who are honoured with the peculiar appellation of the productive class
3. Class of artificers, manufactures and merchants who endeavour to degrade by the humiliating appellation of the barren or unproductive class

The sovereign as in the state has only three duties to attend to:

1. The duty of protecting the society from violence and invasion of other independent societies
2. The duty of protecting every member of the society from injustice or oppression by every other member of it
3. The duty of erecting and maintaining certain public works and institutions

Though Smith kept condemning the Mercantile System but his free markets have led to the very anarchy which even mercantilism couldn’t bring in the world.