“No regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain. It can only divert a part of it into a direction into which it might not otherwise have gone; and it is by no means certain that this artificial direction is likely to be more advantageous to the society than that into which it would have gone of its own accord. Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society, which he has in his view. But the study of his own advantage naturally, or rather necessarily leads him to prefer that employment which is most advantageous to the society.”

— Adam Smith

Source: (1776), Book IV, Chapter II, p. 486.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "No regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain. It…" by Adam Smith?

Adam Smith 175

Scottish moral philosopher and political economist 1723–1790

Related quotes

“The introduction of free competition is thus public declaration that from now on the members of society are unequal only to the extent that their capitals are unequal, that capital is the decisive power, and that therefore the capitalists, the bourgeoisie, have become the first class in society. Free competition is necessary for the establishment of big industry, because it is the only condition of society in which big industry can make its way.”

Friedrich Engels (1820–1895) German social scientist, author, political theorist, and philosopher

(1847)

“Every system which endeavours, either, by extraordinary encouragements, to draw towards a particular species of industry a greater share of the capital of the society than what would naturally go to it; or, by extraordinary restraints, to force from a particular species of industry some share of the capital which would otherwise be employed in it; is in reality subversive of the great purpose which it means to promote.”

Adam Smith (1723–1790) Scottish moral philosopher and political economist

Source: The Wealth of Nations (1776), Book IV, Chapter IX, p. 749.
Context: Every system which endeavours, either, by extraordinary encouragements, to draw towards a particular species of industry a greater share of the capital of the society than what would naturally go to it; or, by extraordinary restraints, to force from a particular species of industry some share of the capital which would otherwise be employed in it; is in reality subversive of the great purpose which it means to promote. It retards, instead of accelerating, the progress of the society towards real wealth and greatness; and diminishes, instead of increasing, the real value of the annual produce of its land and labour.
All systems either of preference or of restraint, therefore, being thus completely taken away, the obvious and simple system of natural liberty establishes itself of its own accord. Every man, as long as he does not violate the laws of justice, is left perfectly free to pursue his own interest his own way, and to bring both his industry and capital into competition with those of any other man, or order of men. The sovereign is completely discharged from a duty, in the attempting to perform which he must always be exposed to innumerable delusions, and for the proper performance of which no human wisdom or knowledge could ever be sufficient; the duty of superintending the industry of private people, and of directing it towards the employments most suitable to the interest of the society. According to the system of natural liberty, the sovereign has only three duties to attend to; three duties of great importance, indeed, but plain and intelligible to common understandings: first, the duty of protecting the society from the violence and invasion of other independent societies; secondly, the duty of protecting, as far as possible, every member of the society from the injustice or oppression of every other member of it, or the duty of establishing an exact administration of justice; and, thirdly, the duty of erecting and maintaining certain public works and certain public institutions, which it can never be for the interest of any individual, or small number of individuals, to erect and maintain; because the profit could never repay the expence to any individual, or small number of individuals, though it may frequently do much more than repay it to a great society.
The proper performance of those several duties of the sovereign necessarily supposes a certain expence; and this expence again necessarily requires a certain revenue to support it.

“Only the working masses can change society; but they will not do that spontaneously, on their own. They can rock capitalism back onto its heels but they will only knock it out if they have the organisation, the socialist party, which can show the way to a new, socialist order of society. Such a party does not just emerge. It can only be built out of the day-to-day struggles of working people.”

Paul Foot

Why You Should Be a Socialist http://www.marxists.org/archive/foot-paul/1977/wysbas/ch8.htm, Ch8 (1977)

“The division of labour is a consequence of the previous accumulation of capital… As the accumulation of capital must have preceded the division of labour, so its subsequent division can only be extended as capital is more and more accumulated. Accumulation and division act and react on each other. The quantity of raw materials which the same number of people can work up increases in a great proportion, as labour comes to be more and more subdivided; and acccording as the operations of each workman are reduced to a greater degree of identity and simplicity, he has, as already explained, a greater chance of discovering machines and processes for facilitating and abridging his labour. The quantity of industry, therefore, not only increases in every country with the increase of the stock or capital which sets it in motion; but, in consequence of this increase, the division of labour becomes extended, new and more powerful implements and machines are invented, and the same quantity of labour is thus made to produce an infinitely greater quantity of commodities”

John Ramsay McCulloch (1789–1864) Scottish economist, author and editor

Source: The principles of political economy, 1825, p. 95-96

“I think it is only because capitalism has proved so enormously more efficient than alternative methods that it has survived at all. (…) I'm not sure capitalism is the right word. There is a sense in which every society is capitalist. The Soviet Union was capitalist, but it was state capitalism. Latin American societies in the past have been capitalist, but it has been oligarchic capitalism. So what we really need to talk about is not capitalism but free market or competitive capitalism which is the system that we would like to have adopted, not just capitalism.”

Milton Friedman (1912–2006) American economist, statistician, and writer

Interview with Parker in Randall E. Parker(ed.), Reflection on the Great Depression (2002)

“Gold is required in large quantities only in a society which produces a very large economic surplus and can afford to transform part of that surplus into gold for prestige purposes (as in India) or into coinage and money to promote capitalism”

Walter Rodney book How Europe Underdeveloped Africa

as in Western Europe
Source: How Europe Underdeveloped Africa (1972), p. 106.

“The same thing applies to the individual in organized society. When each citizen submits himself to the authority of law he does not thereby decrease his independence or freedom, but rather increases it. By recognizing that he is a part of a larger body which is banded together for a common purpose, he becomes more than an individual, he rises to a new dignity of citizenship. Instead of finding himself restricted and confined by rendering obedience to public law, he finds himself protected and defended and in the exercise of increased and increasing rights. It is true that as civilization becomes more complex it is necessary to surrender more and more of the freedom of action and live more and more according to the rule of public regulation, but it is also true that the rewards and the privileges which come to a member of organized society increase in a still greater proportion. Primitive life has its freedom and its attraction, but the observance of the restrictions of modern civilization enhances the privileges of living a thousandfold.”

Calvin Coolidge (1872–1933) American politician, 30th president of the United States (in office from 1923 to 1929)

1920s, Freedom and its Obligations (1924)

“Power, instrument of the collective force, created in society to serve as mediator between capital and labor, has become inescapably enchained to capital and directed against the proletariat. No political reform can resolve this contradiction, since, according to the avowal of politicians themselves, such a reform could only end by giving more energy and expansion to power, and until it had overthrown the hierarchy and dissolved society, power would not be able to attack the prerogatives of monopoly. The problem consists, then, for the working classes, not in capturing, but in defeating both power and monopoly, which would mean to make rise from the bowels of the people, from the depths of labor, a power greater, an action more powerful which would envelop capital and the State and subjugate them.”

Pierre Joseph Proudhon (1809–1865) French politician, mutualist philosopher, economist, and socialist

Confessions of a Revolutionary (1849)

““Isn’t there any way—” He broke off. Can’t the past be altered? he asked himself. Evidently not. Cause and effect work in only one direction, and change is real. So what’s gone is gone, and I might as well get out of here.”

Philip K. Dick book The Three Stigmata of Palmer Eldritch

Source: The Three Stigmata of Palmer Eldritch (1965), Chapter 10 (p. 173)

“In the first place, I own myself the friend to a very free system of commerce, and hold it as a truth, that commercial shackles are generally unjust, oppressive and impolitic — it is also a truth, that if industry and labor are left to their own course, they will generally be directed to those objects which are the most productive, and this in a more certain and direct manner than the wisdom of the most enlightened legislature could point out.”

James Madison (1751–1836) 4th president of the United States (1809 to 1817)

Debating on duties on imports (9 April 1789), published in The Debate and Proceedings in the Congress of the United States (1834), Vol. 1, Joseph Gales, editor, Washington DC, Gales and Seaton, publisher , pp. 115-116
1780s

Help us to complete the source, original and additional information

Adam Smith 175

Related quotes

Related topics