Adam Smith's Simplified Wealth of Nations, Book 4, Chapter 7i: The Effects of Monopoly on the Nation

Chapter 7i: The Effects of Monopoly on the Nation

143 The monopoly hinders the country's capital from maintaining so great a quantity of productive labour as it would otherwise maintain. 144 By raising mercantile profits, the monopoly discourages land improvement.
  • The monopoly hurts the landlord's interest by retarding the natural increase of:
  • 145 The monopoly raises the mercantile profit rate and increases the gain of our merchants.
  • A small profit on a great capital generally affords a greater revenue than a great profit on a small one.
  • 146 The original sources of revenue are wages, rent, and profits. 147 It is solely by raising the ordinary profit rate that the monopoly has proved advantageous to any order of men.
  • Have the exorbitant profits of the merchants of Cadiz and Lisbon increased the capital of Spain and Portugal?
  • The Spaniards and Portuguese endeavour every day to strengthen their absurd monopoly to expel those foreign capitals from a trade which their own capitals grows less capable of carrying on.
  • The conduct and character of merchants of Cadiz and Lisbon merchants are very different from those of Amsterdam.
  • London merchants have not yet become such magnificent lords as those of Cadiz and Lisbon.
  • Light come, light go, says the proverb.
  • The ordinary tone of expence seems to be regulated everywhere by the facility of getting money to spend, not so much by the real ability of spending.
  • 148 The single advantage the monopoly brings to a single order of men is in many ways hurtful to the country's interest.

    149 Creating a great empire of customers may appear as a project good only for a nation of shopkeepers. 150 The maintenance of this monopoly was the sole end and purpose of British dominion over her colonies. Next: Chapter 7j: Colony Assemblies and Representation