What is The Wealth of Nations about?

The The Wealth of Nations book try the worka most important of the British intellectual Adam Smith. This interesting book it was published in March 1776 and was established as the first work on political economy in history.

The publication represents a deep analysis of the main elements of the economy and production, to learn how to organize, transform and use them for the benefit of the maximum production of wealth, which according to the thinking of this famous can be developed through the various levels of hierarchy that those who intervene in the economy of a given nation.

In this sense, the followers of this famous writer, allow themselves to know the liberal thought and what today is known as capitalism, in addition to recognizing him and his work as the father of ideology.

What is the Wealth of Nations about?

There is no other book that has had more influence on politics, economic thought, and economics.

welfare of the population all over the world that Wealth of Nations.

It is considered the first study of great formality within modern economics and although it was published in 1776 it projects principles that through time continue to maintain their validity, however, many of these principles have been ignored completely.

This book describes how division of work and the expansion of trade provide much more production, social welfare and wealth, which is indisputable, since nowadays not even the most popular politician discusses the benefits generated by the division of labor, helping people to specialize in the various activities they can do more efficiency.

Following with the Adam Smith's argument, the higher production lowers the price of the products in the market. While this happens, the expansion of trade increases demand, which ultimately leads to increased production in a way. satisfactory, allowing to increase the contracts of new workers, the salaries and at the same time the improvement of the quality of life of a country.

Another important factor that essentially develops the productivity of labor is the investment of fixed capital in machinery and infrastructure. It is an investment that at the beginning is made to benefit the shareholders, however, in the long term it also provides benefits to the worker, by increasing the productivity.

On the other hand, if it is possible to generate national savings, there is a guarantee of resources so that the capital increases and in this way a fair circle is formed that gives faster growth economic.

In relation to the government's actions, Adam Smith thinks and manifests that it should only deal with national defense and impart justice, formalize organizations that benefit to the community and infrastructure, while this does not give any type of return to investors private.

He highlights that governments that tend to spend much more than their income, only produce debts that would affect future generations. and he indicated with a broad vision that large debts only oppress and surely will ruin the largest nations in all of Europe.

The inaccuracies of this book are typical of the author's time and contains arguments that today seem simple, but No one can contradict that saving, investment and the expansion of trade, in addition to sound public finances, can reach benefit the wealth of nations.

Main Ideas of the Wealth of Nations

In this The main idea of ​​the book is the division of laborEvery employee who has a good incentive and a favorable reward for his efforts generates an increase in production.

In the same way, the price must be evaluated according to the demands that exist in the market and its economy. The state has a responsibility to protect the division of labor and invest in the performance of work that is productive and efficient.

In the same way, the state has the duty to be in charge of supporting through exports, without using public debts as a means of financing and at the same time At the same time, workers must contribute to the nation their tax payments, depending on the income they have, since a country cannot sustain itself only.

Adam Smit's Analysis of the Wealth of Nations

Adam smith in this work he covers a broad economic theme in order for a nation to be stable and prosperous. These factors are usually known, despite being ignored by the markets that are becoming more corporate every day.

The famous one highlights a production and work that depending on how it is treated, the offer could provide more wealth due to increased trade.

So, as determined by Adam Smith, if there is an investment in production, prices fall, which means that as production increases, demand will do so by allowing investments in production and the hiring of many more workers, culminating in a good income in the nation.

In the end, what this car meant by all this is that the Wealth of Nations tries to establish a stable economic system, that provides benefits to all and not only to some, an aspect that unfortunately most of the nations handle. All through favorable salaries, conscious taxes, investments in work tools and protection in the state markets.