Adam Smith ­ Property, Division of Labor and Distribution

Private Property

Notion of private property often taken for granted. Definition. No capital without. (Government to protect interests of protecting private property)

Interesting questions posed:

1. What is property? 1066, 1548, enclosure

2. Who is property for? U.S. Hawaii

3. Significance of Private Property
Slaves
sharecroppers/serfs
Hawaiians
rivers/oceans/rangelands-water rights

Revolt without property - peasants and laws

Proudoun - Property is theft

Division of Labor - Smith - propensity to truck barter and exchange-- pin factory

UPSIDE specialization - more pins - greater profit- greater income
skill, experience, better technology, innovation

DOWNSIDE - assembly line?
unskilled labor

" A man.....generally becomes as stupid and ignorant as it is possible for a human creature to become. The torpor of his mind renders him not only incapable of relishing or bearing a part in any rational conversation, but of conceiving any generous, noble, or tender sentiment, and consequently of forming any just judgment concerning many even of the ordinary duties of private life."

Distribution -

Wages to labor

Rent to land and resources

Profit to capital

subsistence wage until Mill