Adam Smith's Moral Philosophy Book contents
- Frontmatter
- Contents
- Preface
- Adam Smith's Moral Philosophy
- PART ONE ON ADAM SMITH'S MORAL PHILOSOPHICAL VISION
- PART TWO ON THE PLACE OF THE WEALTH OF NATIONS IN ADAM SMITH'S MORAL PHILOSOPHICAL VISION
- 5 On the Progress of Opulence, Setting the Scene in Book I of The Wealth of Nations
- 6 The Role of Capital in the Progress of Opulence: The Analysis of Book II of The Wealth of Nations
- 7 An Unnatural Path to Natural Progress: Smith Represents the Power of His Principles in Book III of The Wealth of Nations
- 8 Smith on the Mercantile System and the Evolution of His Voice: Book IV of The Wealth of Nations and Part VI of The Theory of Moral Sentiments
- 9 On the Role of Government: Book V of The Wealth of Nations
- PART THREE ON ADAM SMITH'S MORAL PHILOSOPHICAL VISION AND THE MODERN DISCOURSE
- Epilogue: On the Human Prospect
- References
- Index
7 - An Unnatural Path to Natural Progress: Smith Represents the Power of His Principles in Book III of The Wealth of Nations
Published online by Cambridge University Press: 11 November 2009
- Frontmatter
- Contents
- Preface
- Adam Smith's Moral Philosophy
- PART ONE ON ADAM SMITH'S MORAL PHILOSOPHICAL VISION
- PART TWO ON THE PLACE OF THE WEALTH OF NATIONS IN ADAM SMITH'S MORAL PHILOSOPHICAL VISION
- 5 On the Progress of Opulence, Setting the Scene in Book I of The Wealth of Nations
- 6 The Role of Capital in the Progress of Opulence: The Analysis of Book II of The Wealth of Nations
- 7 An Unnatural Path to Natural Progress: Smith Represents the Power of His Principles in Book III of The Wealth of Nations
- 8 Smith on the Mercantile System and the Evolution of His Voice: Book IV of The Wealth of Nations and Part VI of The Theory of Moral Sentiments
- 9 On the Role of Government: Book V of The Wealth of Nations
- PART THREE ON ADAM SMITH'S MORAL PHILOSOPHICAL VISION AND THE MODERN DISCOURSE
- Epilogue: On the Human Prospect
- References
- Index
Summary
REVIEWING “THE NATURAL PROGRESS OF OPULENCE”
Smith titles Chapter 1 of WN Book III “Of the natural progress of opulence” because therein he reviews the “general rule” (WN, 377) of “the progress of opulence” that he has established in WN Book II: the progress of opulence begins where the essentials of human life (“subsistence” (WN, 377)) are produced, in agriculture. It is from that foundation and with that support that the production of commodities for “conveniency and luxury” (WN, 377) follows.
Using Smith's country/town dichotomy, progress begins in the country and proceeds to the towns, where concentrations of people allow for the finer division of labor and thus the production of more complex and elegant goods. Variations on this pattern are feasible since towns can reach beyond their immediate locale for sources of subsistence, but although there are “considerable variations,” (WN, 377) these form “no exception to the general rule” (WN, 377).
Here, as he reviews his representation of the “natural progress of opulence” (WN, 376), Smith introduces the issue of risk. His risk analysis complements those general principles he developed in WN Book II, and it provides a segue to the narrative history he is about to tell.
Human beings are, according to Smith, naturally risk averse. As a consequence,
[u]pon equal, or nearly equal profits, most men will chuse to employ their capitals rather in improvement and cultivation of land, than either in the manufactures or in foreign trade. […]
- Type
- Chapter
- Information
- Adam Smith's Moral PhilosophyA Historical and Contemporary Perspective on Markets, Law, Ethics, and Culture, pp. 167 - 181Publisher: Cambridge University PressPrint publication year: 2005