Book I, Chapter XI, 17 — An Inquiry into the Nature and…

Original 18th-century English

All those improvements in the productive powers of labour, which tend directly to reduce the rent price of manufactures, tend indirectly to raise the real rent of land. The landlord exchanges that part of his rude produce, which is over and above his own consumption, or, what comes to the same thing, the price of that part of it, for manufactured produce. Whatever reduces the real price of the latter, raises that of the former. An equal quantity of the former becomes thereby equivalent to a greater quantity of the latter; and the landlord is enabled to purchase a greater quantity of the conveniencies, ornaments, or luxuries which he has occasion for.

Every increase in the real wealth of the society, every increase in the quantity of useful labour employed within it, tends indirectly to raise the real rent of land. A certain proportion of this labour naturally goes to the land. A greater number of men and cattle are employed in its cultivation, the produce increases with the increase of the stock which is thus employed in raising it, and the rent increases with the produce.

The contrary circumstances, the neglect of cultivation and improvement, the fall in the real price of any part of the rude produce of land, the rise in the real price of manufactures from the decay of manufacturing art and industry, the declension of the real wealth of the society, all tend, on the other hand, to lower the real rent of land, to reduce the real wealth of the landlord, to diminish his power of purchasing either the labour, or the produce of the labour, of other people.

The whole annual produce of the land and labour of every country, or, what comes to the same thing, the whole price of that annual produce, naturally divides itself, it has already been observed, into three parts; the rent of land, the wages of labour, and the profits of stock; and constitutes a revenue to three different orders of people; to those who live by rent, to those who live by wages, and to those who live by profit. These are the three great, original, and constituent, orders of every civilized society, from whose revenue that of every other order is ultimately derived.

The interest of the first of those three great orders, it appears from what has been just now said, is strictly and inseparably connected with the general interest of the society. Whatever either promotes or obstructs the one, necessarily promotes or obstructs the other. When the public deliberates concerning any regulation of commerce or police, the proprietors of land never can mislead it, with a view to promote the interest of their own particular order; at least, if they have any tolerable knowledge of that interest. They are, indeed, too often defective in this tolerable knowledge. They are the only one of the three orders whose revenue costs them neither labour nor care, but comes to them, as it were, of its own accord, and independent of any plan or project of their own. That indolence which is the natural effect of the ease and security of their situation, renders them too often, not only ignorant, but incapable of that application of mind, which is necessary in order to foresee and understand the consequence of any public regulation.

The interest of the second order, that of those who live by wages, is as strictly connected with the interest of the society as that of the first. The wages of the labourer, it has already been shewn, are never so high as when the demand for labour is continually rising, or when the quantity employed is every year increasing considerably. When this real wealth of the society becomes stationary, his wages are soon reduced to what is barely enough to enable him to bring up a family, or to continue the race of labourers. When the society declines, they fall even below this. The order of proprietors may perhaps gain more by the prosperity of the society than that of labourers; but there is no order that suffers so cruelly from its decline. But though the interest of the labourer is strictly connected with that of the society, he is incapable either of comprehending that interest, or of understanding its connexion with his own. His condition leaves him no time to receive the necessary information, and his education and habits are commonly such as to render him unfit to judge, even though he was fully informed. In the public deliberations, therefore, his voice is little heard, and less regarded; except upon particular occasions, when his clamour is animated, set on, and supported by his employers, not for his, but their own particular purposes.

His employers constitute the third order, that of those who live by profit. It is the stock that is employed for the sake of profit, which puts into motion the greater part of the useful labour of every society. The plans and projects of the employers of stock regulate and direct all the most important operation of labour, and profit is the end proposed by all those plans and projects. But the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin. The interest of this third order, therefore, has not the same connexion with the general interest of the society, as that of the other two. Merchants and master manufacturers are, in this order, the two classes of people who commonly employ the largest capitals, and who by their wealth draw to themselves the greatest share of the public consideration. As during their whole lives they are engaged in plans and projects, they have frequently more acuteness of understanding than the greater part of country gentlemen. As their thoughts, however, are commonly exercised rather about the interest of their own particular branch of business. than about that of the society, their judgment, even when given with the greatest candour (which it has not been upon every occasion), is much more to be depended upon with regard to the former of those two objects, than with regard to the latter. Their superiority over the country gentleman is, not so much in their knowledge of the public interest, as in their having a better knowledge of their own interest than he has of his. It is by this superior knowledge of their own interest that they have frequently imposed upon his generosity, and persuaded him to give up both his own interest and that of the public, from a very simple but honest conviction, that their interest, and not his, was the interest of the public. The interest of the dealers, however, in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public. To widen the market, and to narrow the competition, is always the interest of the dealers. To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it, and can only serve to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens. The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.

# PRICES OF WHEAT

Year Prices/Quarter Average of different Average prices of in each year prices in one year each year in money of 1776

£ s d £ s d £ s d 1202 0 12 0 1 16 0 1205 0 12 0 0 13 4 0 13 5 2 0 3 0 15 0 1223 0 12 0 1 16 0 1237 0 3 4 0 10 0 1243 0 2 0 0 6 0 1244 0 2 0 0 6 0 1246 0 16 0 2 8 0 1247 0 13 5 2 0 0 1257 1 4 0 3 12 0 1258 1 0 0 0 15 0 0 17 0 2 11 0 0 16 0 1270 4 16 0 6 8 0 5 12 0 16 16 0 1286 0 2 8 0 16 0 0 9 4 1 8 0 Total 35 9 3 Average 2 19 1¼

1287 0 3 4 0 10 0 1288 0 0 8 0 1 0 0 1 4 0 1 6 0 1 8 0 3 0¼ 0 9 1¾ 0 2 0 0 3 4 0 9 4 1289 0 12 0 0 6 0 0 2 0 0 10 1½ 1 10 4½ 0 10 8 1 0 0 1290 0 16 0 2 8 0 1294 0 16 0 2 8 0 1302 0 4 0 0 12 0 1309 0 7 2 1 1 6 1315 1 0 0 3 0 0 1316 1 0 0 1 10 0 1 10 6 4 11 6 1 12 0 2 0 0 1317 2 4 0 0 14 0 2 13 0 1 19 6 5 18 6 4 0 0 0 6 8 1336 0 2 0 0 6 0 1338 0 3 4 0 10 0 Total 23 4 11¼ Average 1 18 8

1339 0 9 0 1 7 0 1349 0 2 0 0 5 2 1359 1 6 8 3 2 2 1361 0 2 0 0 4 8 1363 0 15 0 1 15 0 1369 1 0 0 1 4 0 1 2 0 2 9 4 1379 0 4 0 0 9 4 1387 0 2 0 0 4 8 1390 0 13 4 0 14 0 0 14 5 1 13 7 0 16 0 1401 0 16 0 1 17 6 1407 0 4 4¾ 0 3 4 0 3 10 0 8 10 1416 0 16 0 1 12 0 Total 15 9 4 Average 1 5 9½

1423 0 8 0 0 1425 0 4 0 0 1434 1 6 8 4 1435 0 5 4 8 1439 1 0 0 1 6 8 1 3 4 2 6 8 1440 1 4 0 2 8 0 1444 0 4 4 0 4 2 0 4 8 0 4 0 1445 0 4 6 0 9 0 1447 0 8 0 0 16 0 1448 0 6 8 0 13 4 1449 0 5 0 0 10 0 1451 0 8 0 0 16 0 Total 12 15 4 Average 1 1 3⅓

1453 0 5 4 0 10 8 1455 0 1 2 0 2 4 1457 0 7 8 1 15 4 1459 0 5 0 0 10 0 1460 0 8 0 0 16 0 1463 0 2 0 0 1 10 0 3 8 0 1 8 1464 0 6 8 0 10 0 1486 1 4 0 1 17 0 1491 0 14 8 1 2 0 1494 0 4 0 0 6 0 1495 0 3 4 0 5 0 1497 1 0 0 1 11 0 Total 8 9 0 Average 0 14 1

1499 0 4 0 0 6 0 1504 0 5 8 0 8 6 1521 1 0 0 1 10 0 1551 0 8 0 0 8 0 1553 0 8 0 0 8 0 1554 0 8 0 0 8 0 1555 0 8 0 0 8 0 1556 0 8 0 0 8 0 1557 0 8 0 0 4 0 0 17 8½ 0 17 8½ 0 5 0 2 13 4 1558 0 8 0 0 8 0 1559 0 8 0 0 8 0 1560 0 8 0 0 8 0 Total 6 0 2½ Average 0 10 0½

1561 0 8 0 0 8 0 1562 0 8 0 0 8 0 1574 2 16 0 1 4 0 2 0 0 2 0 0 1587 3 4 0 3 4 0 1594 2 16 0 2 16 0 1595 2 13 0 2 13 0 1596 4 0 0 4 0 0 1597 5 4 0 4 0 0 4 12 0 4 12 0 1598 2 16 8 2 16 8 1599 1 19 2 1 19 8 1600 1 17 8 1 17 8 1601 1 14 10 1 14 10 Total 28 9 4 Average 2 7 5½

PRICES OF THE QUARTER OF NINE BUSHELS OF THE BEST OR HIGHEST PRICED WHEAT AT WINDSOR MARKET, ON LADY DAY AND MICHAELMAS, FROM 1595 TO 1764 BOTH INCLUSIVE; THE PRICE OF EACH YEAR BEING THE MEDIUM BETWEEN THE HIGHEST PRICES OF THESE TWO MARKET DAYS.

£ s d 1595 2 0 0 1596 2 8 0 1597 3 9 6 1598 2 16 8 1599 1 19 2 1600 1 17 8 1601 1 14 10 1602 1 9 4 1603 1 15 4 1604 1 10 8 1605 1 15 10 1606 1 13 0 1607 1 16 8 1608 2 16 8 1609 2 10 0 1610 1 15 10 1611 1 18 8 1612 2 2 4 1613 2 8 8 1614 2 1 8½ 1615 1 18 8 1616 2 0 4 1617 2 8 8 1618 2 6 8 1619 1 15 4 1620 1 10 4 26)54 0 6½ Average 2 1 6¾

1621 1 10 4 1622 2 18 8 1623 2 12 0 1624 2 8 0 1625 2 12 0 1626 2 9 4 1627 1 16 0 1628 1 8 0 1629 2 2 0 1630 2 15 8 1631 3 8 0 1632 2 13 4 1633 2 18 0 1634 2 16 0 1635 2 16 0 1636 2 16 8 16)40 0 0 Average 2 10 0

1637 2 13 0 1638 2 17 4 1639 2 4 10 1640 2 4 8 1641 2 8 0 1646 2 8 0 1647 3 13 0 1648 4 5 0 1649 4 0 0 1650 3 16 8 1651 3 13 4 1652 2 9 6 1653 1 15 6 1654 1 6 0 1655 1 13 4 1656 2 3 0 1657 2 6 8 1658 3 5 0 1659 3 6 0 1660 2 16 6 1661 3 10 0 1662 3 14 0 1663 2 17 0 1664 2 0 6 1665 2 9 4 1666 1 16 0 1667 1 16 0 1668 2 0 0 1669 2 4 4 1670 2 1 8 1671 2 2 0 1672 2 1 0 1673 2 6 8 1674 3 8 8 1675 3 4 8 1676 1 18 0 1677 2 2 0 1678 2 19 0 1679 3 0 0 1680 2 5 0 1681 2 6 8 1682 2 4 0 1683 2 0 0 1684 2 4 0 1685 2 6 8 1686 1 14 0 1687 1 5 2 1688 2 6 0 1689 1 10 0 1690 1 14 8 1691 1 14 0 1692 2 6 8 1693 3 7 8 1694 3 4 0 1695 2 13 0 1696 3 11 0 1697 3 0 0 1698 3 8 4 1699 3 4 0 1700 2 0 0 60) 153 1 8 Average 2 11 0⅓

1701 1 17 8 1702 1 9 6 1703 1 16 0 1704 2 6 6 1705 1 10 0 1706 1 6 0 1707 1 8 6 1708 2 1 6 1709 3 18 6 1710 3 18 0 1711 2 14 0 1712 2 6 4 1713 2 11 0 1714 2 10 4 1715 2 3 0 1716 2 8 0 1717 2 5 8 1718 1 18 10 1719 1 15 0 1720 1 17 0 1721 1 17 6 1722 1 16 0 1723 1 14 8 1724 1 17 0 1725 2 8 6 1726 2 6 0 1727 2 2 0 1728 2 14 6 1729 2 6 10 1730 1 16 6 1731 1 12 10 1 12 10 1732 1 6 8 1 6 8 1733 1 8 4 1 8 4 1734 1 18 10 1 18 10 1735 2 3 0 2 3 0 1736 2 0 4 2 0 4 1737 1 18 0 1 18 0 1738 1 15 6 1 15 6 1739 1 18 6 1 18 6 1740 2 10 8 2 10 8 10) 18 12 8 1 17 3½

1741 2 6 8 2 6 8 1742 1 14 0 1 14 0 1743 1 4 10 1 4 10 1744 1 4 10 1 4 10 1745 1 7 6 1 7 6 1746 1 19 0 1 19 0 1747 1 14 10 1 14 10 1748 1 17 0 1 17 0 1749 1 17 0 1 17 0 1750 1 12 6 1 12 6 10) 16 18 2 1 13 9¾

1751 1 18 6 1752 2 1 10 1753 2 4 8 1754 1 13 8 1755 1 14 10 1756 2 5 3 1757 3 0 0 1758 2 10 0 1759 1 19 10 1760 1 16 6 1761 1 10 3 1762 1 19 0 1763 2 0 9 1764 2 6 9 64) 129 13 6 Average 2 0 6¾

Musean translation

Mouseia’s complete machine-assisted Musean translation, made directly from the complete English text of all five books for fidelity, the author’s force and cadence, and modern clarity.

All improvements in the productive powers of labor that directly reduce the rent price of manufactured goods indirectly raise the real rent of land. The landlord exchanges the part of his raw produce that exceeds his own consumption—or, equivalently, its price—for manufactured goods. Whatever lowers the real price of the latter raises the real value of the former. The same quantity of raw produce then commands a greater quantity of manufactured goods, and the landlord can buy more of the conveniences, ornaments, or luxuries he desires.

Every increase in society's real wealth, every increase in the amount of useful labor employed within it, indirectly tends to raise the real rent of land. A certain share of this labor naturally goes into the land. More people and animals work to cultivate it; the produce grows with the stock employed to raise it, and rent grows with the produce.

The opposite conditions—neglect of cultivation and improvement, a fall in the real price of any part of the land's raw produce, a rise in the real price of manufactured goods as manufacturing skill and industry decay, and a decline in society's real wealth—all tend instead to lower the real rent of land, reduce the landlord's real wealth, and diminish his ability to buy either other people's labor or its produce.

The whole annual produce of the land and labor of any country—or, equivalently, the whole price of that produce—naturally divides, as already observed, into three parts: the rent of land, the wages of labor, and the profits of stock. It provides revenue to three distinct groups: those who live on rent, those who live on wages, and those who live on profit. These are the three great, original, constituent groups of every civilized society; from their revenue the revenue of every other group ultimately derives.

The interest of the first of these three great groups, as what has just been said makes clear, is strictly and inseparably bound to society's general interest. Whatever advances or obstructs one necessarily advances or obstructs the other. When the public considers a regulation of commerce or civic administration, landowners cannot mislead it in pursuit of their own group's interest—provided, at least, that they understand that interest tolerably well. Too often, indeed, they lack even this modest understanding. They alone among the three groups receive their revenue without labor or care: it comes to them, as it were, of its own accord, independently of any plans or projects of theirs. The indolence naturally produced by the ease and security of their position too often leaves them not only ignorant but incapable of the sustained attention needed to foresee and understand the consequences of a public regulation.

The interest of the second group, those who live on wages, is as closely bound to society's interest as that of the first. As already shown, workers' wages are highest when the demand for labor rises continually, or when the amount of labor employed increases substantially each year. When society's real wealth becomes stationary, wages soon fall to barely enough to raise a family and perpetuate the laboring population. When society declines, they fall still further. Landowners may gain more from society's prosperity than workers do, but no group suffers so cruelly from its decline. Yet although the worker's interest is closely bound to society's, he can neither grasp society's interest nor understand its connection with his own. His circumstances leave him no time to acquire the necessary information, while his education and habits generally leave him unfit to judge even if he were fully informed. Consequently, his voice is seldom heard in public deliberations and heeded still less, except on particular occasions when his employers stir up, encourage, and support his outcry—not for his purposes, but for their own.

His employers make up the third group, those who live on profit. Stock employed in pursuit of profit sets most of society's useful labor in motion. The plans and projects of those who employ stock govern and direct all the most important operations of labor, and profit is the object of every such plan and project. But unlike rent and wages, the rate of profit does not rise with society's prosperity and fall with its decline. On the contrary, it is naturally low in rich countries and high in poor ones, and always highest in countries advancing most rapidly toward ruin. This third group's interest, therefore, is not linked to society's general interest in the same way as the interests of the other two. Among its members, merchants and master manufacturers are the two classes that commonly employ the largest capitals and, through their wealth, command the greatest share of public attention. Because they spend their whole lives making plans and projects, they often have sharper minds than most country gentlemen. Yet their thoughts usually concern the interest of their own particular branch of business rather than society's; even when their judgment is offered with the utmost candor—which has not always been the case—it is far more reliable on the former subject than on the latter. Their advantage over the country gentleman lies not so much in knowing the public interest as in knowing their own interest better than he knows his. By this superior knowledge of their own interest they have often exploited his generosity, persuading him, in the simple but sincere belief that their interest rather than his was the public's interest, to surrender both his own interest and that of the public. The interests of dealers in any particular branch of trade or manufacturing, however, always differ in some respects from the public's, and may even oppose them. It is always in the dealers' interest to enlarge the market and narrow competition. Enlarging the market may often suit the public interest well enough; narrowing competition must always run against it, and can serve only to let dealers raise their profits above their natural level and levy an absurd tax, for their own benefit, on the rest of their fellow citizens. Any proposal for a new commercial law or regulation from this group should always be heard with great caution and never adopted until it has been examined long and carefully, with not only the most scrupulous but the most suspicious attention. It comes from a group whose interest is never precisely the same as the public's, whose members generally have an interest in deceiving and even oppressing the public, and who have accordingly deceived and oppressed it on many occasions.

PRICES OF WHEAT