Adam Smith's Simplified Wealth of Nations, Book 1, Chap. 6b: Rent, Wages, Profits

Chap. 6b: Rent, Wages, Profits

The Three Sources of Revenue From the Parts of Price

15 In the most improved societies, there are a few commodities with prices made up only of wages and profits. 16 The price of any commodity must have one, some, or all of those three parts. 17 Since all commodities have these components, the whole produce of a society, taken complexly, must also resolve itself into the same three parts to be distributed among some its members as the:

Wages, profit, and rent, are the three original sources of all revenue and all exchangeable value.

18 Wages are the revenue from labour. 19 When wages, rent, and profits belong to different persons, they are readily distinguished 20 Farmers who farm their own land, like the North American and West Indian planters, should earn both profits and rent by themselves. 21 Common farmers frequently work directly on the farms they manage. 22 An independent manufacturer who works his own stock gains both wages and profits. 23 A gardener who cultivates his own garden combines the character of the landlord, farmer, and labourer. 24 The price of most commodities in civilized countries are made up largely of rent and profits, instead of wages.
Next: Chapter 7a: Natural and Market Price
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