Adam Smith’s The Wealth of Nations - The Natural Order is...

Adam Smith’s The Wealth of Nations - The Natural Order is Driven by Man’s Self-interest Adam Smith’s The Wealth of Nations argues for a system of political economy that separates economy – the creation and distribution of wealth – from governmental interference. In Smith’s view, the economy of a nation grows as a direct consequence of private business ventures in the interest of each individual owner. Regulation by the government hurts the economy, and the progress of society is derived from the flow of the market. Things should be left in their natural states, thus maintaining a â€Å"natural order† of society. The basis of Smith’s thesis is that this natural order is driven by Man’s self-interest. Smith presents the first†¦show more content†¦The next aspect of the â€Å"natural order† that Smith derives from self-interest is his ideas concerning the nature of exchange and the theory of value. Smith out rightly declares that the nature of exchange is a combination between the self-interest of two parties, that it is â€Å"not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest (22).† Smith believes that exchange takes place when both parties stand to gain, because bargainers â€Å"address [each other], not to [each other’s] humanity, but to [each other’s] self-love† (22). Similarly, Smith also bases his theory of value on the assumption that Man will always act in the manner that allows him to gain the most. Smith defines the value of any product as â€Å"equal to the quantity of labor which it enables him to purchase or command† (36). By th is, Smith is using exchange to define value, and as exchange, according to Smith, is rooted in self-interest, so value is also. The final aspect of Smith’s system of natural order derived from self-interest is that of the relations between the laborer, the landlord, and the stockholder. Smith writes, â€Å"he [the stockholder] could have no interest to employ them [laborers], unless he expected †¦ something more than what was sufficient to replace his stock to him† (46). Here, Smith has assumed that the stockholder will never have relations with laborersShow MoreRelatedLiberty: Adam Smith and Alexis de Tocqueville Essay2532 Words   |  11 PagesBoth Adam Smith and Alexis de Tocqueville agree that an individual is the most qualified to make decisions affecting the sphere of the individual as long as those decisions do not violate the law of justice. From this starting point, each theorist proposes a role of government and comments on human nature and civil society. Smith focuses on economic liberty and the ways in which government can repress this liberty, to the detriment of society. 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