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In The Theory of Moral Sentiments, Smith wrote: How selfish soever man may be supposed, there are evidently some principles in his nature which interest him in the fortune of others and render their happiness necessary to him though he derives nothing from it except the pleasure of seeing it.1 . 2; available online at: 5. 12; available online at: 3. Ibid., part VII, section II, chap. Wage rates would be higher, he argued, for trades that were more difficult to learn, because people would not be willing to learn them if they were not compensated by a higher wage. In The Wealth of Nations, he had defended smuggling as a legitimate activity in the face of unnatural legislation.
2, para. He also thought that the government should provide public works, such as roads and bridges, that, he assumed, would not be worthwhile for individuals to provide. Self-interest is the mechanism that can remedy this shortcoming. To judge whether such retaliations are likely to produce such an effect does not, perhaps, belong so much to the science of a legislator, whose deliberations ought to be governed by general principles which are always the same, as to the skill of that insidious and crafty animal, vulgarly called a statesman or politician, whose councils are directed by the momentary fluctuations of affairs. Smith 1776, book I, chap. Using the famous example of pins, Smith asserted that ten workers could produce 48,000 pins per day if each of eighteen specialized tasks was assigned to particular workers. In the fourth book of The Wealth of Nationspublished, remember, in 1776Smith told Great Britain that its American colonies were not worth the cost of keeping. Smith used this insight on equality of returns to explain why wage rates differed. He later attended Balliol College at Oxford, graduating with an extensive knowledge of European literature and an enduring contempt for English schools. Said Smith: It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect our dinner, but from their regard to their own interest (ibid.). When there is no probability that any such repeal can be procured, it seems a bad method of compensating the injury done to certain classes of our people to do another injury ourselves, not only to those classes, but to almost all the other classes of them. More from The Economist The Economist digital editions Newsletters Events Jobs.Economist.com The Economist Store Timekeeper saved articles My Subscription Subscribe to The Economist Manage my subscription Renew Log in or register Subscribe World politics Politics this week United States Britain Europe China Asia Americas Middle East & Africa Business & finance All Business & finance Which MBA? Economics All Economics Economics by invitation Economics A-Z Markets & data Indicators Science & technology All Science & technology Technology Quarterly Culture All Culture More Intelligent Life Style guide The Economist Quiz Book reviews Blogs Latest blog posts Americas view Analects Babbage Banyan Baobab Blighty Buttonwood's notebook Charlemagne Democracy in America Eastern approaches Erasmus Feast and famine Free exchange Game theory Graphic detail Gulliver Newsbook Pomegranate Prospero The Economist explains Debate Economist debates What the world thinks Economics by invitation Letters to the editor Multimedia Multimedia library World Business & economics Science & technology Culture Events The Economist in audio Print edition Current issue Previous issues Special reports Politics this week Business this week Leaders KAL's cartoon Obituaries . 9; available online at: 6. Because Smiths was the most systematic and comprehensive study of economics up until that time, his economic thinking became the basis for classical economics. 1; available online at: 2. Those workmen, however, who suffered by our neighbors prohibition will not be benefited by ours. e44e635bdc
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