Adam Smith 's Wealth Of Nations

Decent Essays
Thuy Hua
PHIL 225
First Exegetical/Critical Paper
Professor Michael Schleeter
October 5, 2015
Adam Smith’s Wealth of Nations
For Smith, the value of all commodities that the market is supposed to promote is not come from the money price, but come from the amount of labor required to purchase them because nobody wants to purchase a good that is created with less effort. Therefore, the real value that the market needs to promote is the labor that is invested in the product. For example, in real life diamond or gold is very expensive but people do not really need them because without them, people still alive. On the other hand, water or food is not as expensive as diamond or gold, but they are very necessary in real life because we cannot survive without water and foods. According to Smith, to understand the difference from these prices, we can look at the amount of labor needed to bring these products to market. The money price of a particular community may fluctuate from a variety of reasons, but the amount of labor needed to purchase it remains constant.
To promote that value, we should improve the division of labor, which is the greatest improvement in the productive power of labor. Division of labor is always has the important role in increasing productivity exponentially of a company. For Smith, division of labor is very important even in producing a very simple product because it creates specialized knowledge of a particular trade or task that makes the employees get
Get Access