The Wealth of Nations Book 2 and 3

Description

Written over 200 years ago, The Wealth of Nations is quite possibly one of the most illuminating writings on economy and the distribution of wealth that was ever written. Penned by Adam Smith – a Scottish moral philosopher and politician who played a pivotal role in the development of political economy – this literary work is composed of several books outlining topics such as the nature of capital and the importance of adding value to labor and manufactured products.

Books 2 and 3, presented here, examine stock accumulation, possession and employment, as well as the accumulation of capital. The third book also introduces two of Smith’s most important concepts: productive and unproductive labor.

The second book of The Wealth of Nations is a detailed account of what stocks are and how they may be maintained or accumulated over time. It describes the way in which a stock belonging to a particular individual may or may not offer a sustainable choice over a longer period of time. If the stock can provide its owner with that advantage, then only part of its value is required for daily sustenance, while the rest can be accumulated and circulated as capital. Smith emphasizes the value of increasing capital, and continues to take his thoughts on the matter further in Book 3.

The third book introduces the extremely important topics of productive and unproductive labor. Smith argues here that productive labor is the type of labor that creates genuine value that individuals can use as a necessity. Unproductive labor, on the other hand, offers no additional value, and actually leads to loss of value, due to it still requiring the payment of wages and prices.

Smith’s The Wealth of Nation is a practical work of literature that anyone truly interested in the way the wealth of the world is distributed and how the politics and economy of a nation works (or should work) will benefit greatly from reading.
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