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The Wealth of Nations (Modern Library Classics) Paperback – November 14, 2000
| Adam Smith (Author) Find all the books, read about the author, and more. See search results for this author |
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Adam Smith’s masterpiece, first published in 1776, is the foundation of modern economic thought and remains the single most important account of the rise of, and the principles behind, modern capitalism. Written in clear and incisive prose, The Wealth of Nations articulates the concepts indispensable to an understanding of contemporary society; and Robert Reich’s Introduction both clarifies Smith’s analyses and illuminates his overall relevance to the world in which we live. As Reich writes, “Smith’s mind ranged over issues as fresh and topical today as they were in the late eighteenth century—jobs, wages, politics, government, trade, education, business, and ethics.”
Introduction by Robert Reich • Commentary by R. H. Campbell and A. S. Skinner • Includes a Modern Library Reading Group Guide
- Print length1184 pages
- LanguageEnglish
- PublisherModern Library
- Publication dateNovember 14, 2000
- Dimensions5.12 x 1.79 x 8 inches
- ISBN-109780679783367
- ISBN-13978-0679783367
- Lexile measure1500L
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Editorial Reviews
Review
--Robert L. Heilbroner
From the Inside Flap
From the Back Cover
About the Author
Robert Reich is Chancellor’s Professor of Public Policy at the Goldman School of Public Policy at the University of California, Berkeley. His books include The Work of Nations, Reason, Supercapitalism, and Aftershock.
Excerpt. © Reprinted by permission. All rights reserved.
Adam Smith's ideas fit perfectly with this new democratic, individualistic idea. To him, the "wealth" of a nation wasn't determined by the size of its monarch's treasure or the amount of gold and silver in its vaults, nor by the spiritual worthiness of its people in the eyes of the Church. A nation's wealth was to be judged by the total value of all the goods its people produced for all its people to consume. To a reader at the start of the twenty-first century, this assertion may seem obvious. At the time he argued it, it was a revolutionary democratic vision.
Smith was born in 1723, in the small Scottish port of Kirkcaldy, which sits across the Firth of Forth from Edinburgh. His father was a collector of customs—a job that literally embodied the old mercantilist philosophy that Smith would later argue against. He was educated at the University of Glasgow, whose professors passionately debated the new concepts of individualism and ethics (one of his teachers, Francis Hutcheson, was prosecuted by the Scottish Presbyterian church for spreading the "false and dangerous" doctrines that moral goodness could be obtained by promoting happiness in others and that it was possible to know good and evil without knowing God), and then at Oxford, whose professors didn't debate or teach much of anything. In fact, the lassitude of Oxford's dons prompted Smith to suggest, in The Wealth of Nations, that professors be paid according to the number of students they attract, thereby motivating them to take a more lively interest in teaching—one of Smith's few suggestions with which today's tenured professors of economics generally disagree.
In 1748 Smith returned to the University of Glasgow, first as a professor of logic and then of moral philosophy, filling Francis Hutcheson's chair. There he published The Theory of Moral Sentiments in 1759, which brought him instant fame. In it, Smith asked how a normal self-interested person is capable of making moral judgments, when the essence of morality is selflessness. It was a question that troubled many of the new thinkers of the eighteenth century, who had liberated themselves from both theology and codes of aristocratic or chilvaric virtue. Smith's answer foreshadowed Sigmund Freud's superego: People possess within themselves an "impartial spectator" who advises them about moral behavior.
Smith resigned his professorship in 1764 to become tutor to the son of the late Duke of Buccleuch. The boy's mother, Countess of Dalkeith, had just remarried Charles Townshend, one of Smith's many admirers, who later became Britain's chancellor of the exchequer, and was responsible for imposing the taxes on the American colonies that prompted some Bostonians to throw large quantities of tea into Boston Harbor. For the next two years, Smith traveled throughout the Continent, beginning work on the book that was to become The Wealth of Nations. He visited Voltaire in Geneva, and in Paris met François Quesnay, a physician in the court of Louis XV who had devised a chart of the economy—a "tableau economique" he called it—showing the circulation of products and money in an economy analogous to the flow of blood through a body. Quesnay and his fellow Physiocrats believed that wealth came from a nation's production that enlarged the flow rather than from its accumulation of gold and silver, as the prevailing mercantilists believed, and that governments should therefore remove all impediments to the flow of money and goods in order to increase production.
Smith took these notions to heart, although he didn't agree with everything the Physiocrats propounded (such as their view that agricultural production was the only true source of wealth). Returning to Glasgow in 1766, he spent the better part of the following decade working out his theories. Occasionally he'd travel to London to discuss them with luminaries such as the philosopher Edmund Burke, historian Edward Gibbon, Benjamin Franklin (visiting from America), and the remarkable personalities Samuel Johnson and James Boswell. Smith's book finally appeared on March 9, 1776, in two volumes, and went through several subsequent editions. It was well received, although not an immediate sensation. Smith spent his remaining years back in Edinburgh as commissioner of customs, the same kind of mercantilist sinecure his father had held, and died in July 1790, at the age of sixty-seven.
The Wealth of Nations is resolutely about human beings—their capacities and incentives to be productive, their overall well-being, and the connection between productivity and well-being. In the very first sentence of his Introduction, Smith takes aim at the mercantilists and declares, "The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life. . . ." And two paragraphs later he states that a nation's wealth grows because of "the skill, dexterity, and judgment with which its labour is generally applied. . . ." Smith's concern about all of a nation's working people is evident. In a wealthy nation "a workman, even of the lowest and poorest order, if he is frugal and industrious, may enjoy a greater share of the necessaries and conveniences of life than it is possible for any savage to acquire." In the rest of the book he explains why this is so.
While The Theory of Moral Sentiments showed how normal, self-interested people could make moral judgments by consulting an internal "impartial spectator," in The Wealth of Nations Smith explains how such people will automatically contribute to the well-being of others even absent such consultations, simply by pursuing their own ends. "It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner," writes Smith, in one of the most frequently cited passages in the history of economic thought, "but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love. . . ." With several strokes of his pen, Smith thereby provided a moral justification for motives that had been morally suspect in Western thought for thousands of years.
How can self-interested behavior—the "private interests and passions" of men Smith calls them—lead to the good of the whole? By means, he says, of an "invisible hand"—perhaps the most famous, or infamous, bodily metaphor in all of social science. By an "invisible hand" Smith does not mean a mystical force; he is referring to an unfettered market propelled both by competition among self-interested sellers and by buyers seeking the best possible deals for themselves. If sellers produce too little of something to meet buyers' demands, for example, the price of the product will rise until other sellers step in to fill the gap. If some sellers charge too high a price to begin with, others will step in and charge a lower one.
Unimpeded, the invisible hand will allocate goods efficiently. But the key to wealth creation, for Smith, comes in the division of labor—by which individuals specialize in doing or producing a particular thing. Smith famously illustrates this principle by reference to the making of pins within the kind of small factory that characterized the early years of the Industrial Revolution. "One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head; to make the head requires two or three distinct operations . . . ," he explains. "I have seen a small manufactory of this kind where ten men only were employed . . . [who] could make among them upwards of forty-eight thousand pins a day." He contrasts this with the likely output of individuals who tried to make the entire pins themselves. "[I]f they had all wrought separately and independently . . . they certainly could not each of them have made twenty, perhaps not one pin in a
day. . . ."
Specialization improves productivity because it allows workers to become more skilled in their specific tasks, motivates them to discover more efficient means of doing them, and saves them the time of changing over to different tasks. Here, Smith noticed something that modern managers often overlook: Innovation often begins with the workers closest to the things being worked upon. "A great part of the machines made use of in those manufactures in which labour is most subdivided, were originally the inventions of common workmen, who, being each of them employed in some simple operation, naturally turned their thoughts towards finding out easier and readier methods of performing it."
In order to reap the full benefits of specialization, the market must be sufficiently large. After all, there's little point in creating forty-eight thousand pins if there aren't enough people to buy them. The larger the market, the greater the opportunities for specialization. It follows that barriers to trade, within a nation or between nations—regulations, licenses, tariffs, quotas, and other market protections—reduce potential wealth. At the extreme, the necessity of self-sufficiency causes hardship, as in "the lone houses and very small villages which are scattered about in so desert a country as the Highlands of Scotland, [where] every farmer must be butcher, baker, and brewer for his own family."
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Product details
- ASIN : 0679783369
- Publisher : Modern Library (November 14, 2000)
- Language : English
- Paperback : 1184 pages
- ISBN-10 : 9780679783367
- ISBN-13 : 978-0679783367
- Lexile measure : 1500L
- Item Weight : 1.41 pounds
- Dimensions : 5.12 x 1.79 x 8 inches
- Best Sellers Rank: #925,928 in Books (See Top 100 in Books)
- #1,347 in Theory of Economics
- #2,682 in Workplace Culture (Books)
- #17,445 in Sociology (Books)
- Customer Reviews:
About the author

Adam Smith (16 June 1723 NS (5 June 1723 OS) – 17 July 1790) was a Scottish moral philosopher, pioneer of political economy, and a key figure in the Scottish Enlightenment.
Smith is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Smith is cited as the father of modern economics and is still among the most influential thinkers in the field of economics today.
Smith studied social philosophy at the University of Glasgow and at Balliol College, Oxford, where he was one of the first students to benefit from scholarships set up by fellow Scot, John Snell. After graduating, he delivered a successful series of public lectures at Edinburgh, leading him to collaborate with David Hume during the Scottish Enlightenment. Smith obtained a professorship at Glasgow teaching moral philosophy, and during this time he wrote and published The Theory of Moral Sentiments. In his later life, he took a tutoring position that allowed him to travel throughout Europe, where he met other intellectual leaders of his day.
Smith laid the foundations of classical free market economic theory. The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, he expounded upon how rational self-interest and competition can lead to economic prosperity. Smith was controversial in his own day and his general approach and writing style were often satirised by Tory writers in the moralising tradition of William Hogarth and Jonathan Swift. In 2005, The Wealth of Nations was named among the 100 Best Scottish Books of all time. The minor planet 12838 Adamsmith was named in his memory.
Bio from Wikipedia, the free encyclopedia. Photo by unknown artist [Public domain], via Wikimedia Commons.
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I’m hereafter comparing only two extracts from my hardcopy with the fraudulent copy, which is riddled with similar nonsense. My hardcopy is: “The Wealth of Nations, Complete and Unabridged, Introduction by Robert Reich, Edited with Notes, Marginal Summary and Enlarged Index, by Edwin Cannan. 2000 Modern Library Paperback Edition.” Hereafter, I refer to the latter as Book A. The fraudulent Kindle book edition is: Adam Smith, “An Inquiry into the Nature and Causes of the Wealth of Nations”, which I refer to hereafter as Book B.
First extract, Book A, INTRODUCTION AND PLAN OF THE WORK, page xxiv: “The abundance or scantiness of this supply too seems to depend more on the former of those two circumstances than upon the latter. Among the savage nations of hunters and fishers, every individual who is able to work, is more or less employed in useful labour, …”
Compare Book B., Location 105: “The abundance or scantiness of this deliver, too, appears to rely extra upon the previous of those instances than upon the latter. Among the savage nations of hunters and fishers, every character who’s capable of paintings is greater or less employed in useful labour, …”.
Second extract, Book A: Chapter 1, page 7: “In Poland there are stated to be scarce any manufactures of any kind, a few of those coarser household manufactures excepted, without which no country can well subsist.”
Compare Book B: Location 220: “In Poland there are stated to be scarce any manufactures of any type, some of these coarser manufactures excepted, with out which no u.S.A. Can nicely exist.” Excuse me!
This book holds the keys to national prosperity. It's almost unfathomable to me that one book can teach so much. You will learn about what an economy is, trade, wages, banking, monetary policy, taxes, public debts, agriculture, history, the list goes on and on.
This book is must-read.
Now a review of this specific edition: The font is quite small which makes it hard to read. This is especially a consideration for a 586 page book. I suggest finding another (rather than this Simon & Brown).
Reviewed in the United States on November 19, 2020
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This is a treatise and takes in economics, history, social history and many other aspects, so the whole book in two volumes (as in this ClassicBooks edition) is quite an encompassing read, although it is easy enough to follow and at the same time makes you think. What many people really fail to realise is that Smith wrote about what he observed and knew, and talked with others in the necessary fields, so capitalism was already here as such, it was and is the way of the world in general. If you read this book, you will perhaps start to understand this, as we are taken through the different changes in society over the many centuries. The underlining message and thought of the whole point of Smith’s work is not that only certain people make a profit, but goes down to the grassroots of the matter, the actual labour that people put in. Therefore, even someone working at the bottom of the chain has to be able to earn enough to support initially themselves, and then as time progresses, a family (this is something that so many people do not seem to grasp as they have never read this, and he did not advocate exploitation).
In the end you have a book that takes in so much of the world at the time, with obviously some of the things mentioned altering due to progress in technologies. After all the author could not envisage the size of ships, planes and railways to move lots of cargo, and things like being able to deep freeze perishable items to extend their shelf life. This though does not really alter the basis of the book but shows us how much things have altered since the time of the Scottish Enlightenment. Here is for example explained the benefits and otherwise of the union between Scotland and England. He also criticizes the British Government and its running of certain of its colonies, as well as showing that the supposed economic benefits of slavery are false, and so not only on moral grounds but also economically are ridiculous, showing only the want of power and thus exploitation over other people.
This is really a book that everyone should read and start to understand, because some of the things that we see Smith warn against still go on, such as the lobbying of governments by parties interested only in their profit. Taking in religion, war, education and so much more, including the need for taxation, the author is not necessarily talking about a profit in the terms of money, but as with taxation to supply something like universal education as a profit to us all through its usefulness. This is longwinded at times for which the author apologises, but he did envision more than businessmen reading this. At times we are told why certain things have come about, and with two opposing systems, why he thinks one is slightly better than the other, with logical reasoning that he shows. We also see that the author had an understanding of human nature, and so takes into account things like greed and dishonesty. In all then this is a book that perhaps if more people read, they would understand where Adam Smith was coming from, and that he was not some sort of bogeyman.
The only positive I can find in this edition is that it is the complete text in one single book that feels sturdy thanks to its hard covers. But that really is the only thing good I can say about it.
The covers are badly printed, with a completely out of focus back cover, and the image on the front cover is not even properly aligned, giving a very amateurish look that embarrasses my bookshelf. It's almost like a someone self-published a book using makeshift tools in his shed.
Then my surprise was that there was no preface and absolutely no footnotes. My understanding is that when a work is a couple of centuries old, footnotes and some sort of introduction are needed to at the very least clarify words that have changed in meaning as well as customs and ways of doing things that have changed in our society. What you basically get is the simple text you can get online, not a word more.
Then came my other surprise when I started reading. The text is riddled with spelling errors (e.g. "loose" instead of "lose") and all sorts of typos, for some reason favouring the placing of capital letters in random places (e.g. "Secondly, The advantage which...", "there is at this day a village In Scotland").
I feel this is a poor edition of a great work. The reason I bought it was that I wanted to read it in book form and not have to read it on an electronic device, but the result has been a disappointment, especially given the high asking price. I bought it because it was the only non-abridged edition I saw on Amazon when searching for the book, but maybe I should have looked longer, as I am sure there are plenty more editions available.
The good part is that you can read it like a novel. Its story telling for the most part which makes it s pleasure at times. It took me over 1 month to compete this book, and yes I had to skim over some topics because I didn't find them relevant in the modern era. This is not a book for faint hearted, it will test you character to solider on. Perseverance is a virtue, which you will need in plenty whist read this book. Some of the topics like the funding of east India Company was very interesting to me. The author rightly points out that India and Egypt and too some extend China were still mostly focused on agriculture while the UK was already playing the money game with debt financing of their companies like the East India Company. No wonder the UK went on to rule the world. It was centuries ahead.
If you read this book, then you should because its a classic. I am surprised at way Adam Smith with no formal Economic background and with mostly power of observation was about to deduce so much out of the world around him and write a classic which even to this day is as relevant as it was then.







