blog 8

Agriculture vs. Manufacturing

In the mid 1700’s Adam Smith compiled a book which discusses the economic system of England at that time. He examines how manufactures depend on farmers and how trade between towns is superior to trade between nations. The importance of ownership of land is also a big part of the, Of the Natural Progress of Opulence, section of his novel. Smith believes that with owning land the individual has more control of his wealth, the land owner is the first individual to the completion of a final product so therefore he not only controls his wealth but that of the community, with no wood grown on the property owner’s land then there will be no furniture produced by the wood craftsmen.  

I believe that during Smith’s time, his recordings were an accurate representation of what it took for a nation to become prosperous. In our current economy I think farmers play less of a role, technology producing companies seem to fill one of the larger segments in our nation’s trade. Big business owners seem to be the ones that proper over the farmers. Land has lost its value in today’s world. Wealthy individuals seem to want to invest their money into steady stocks of big businesses and education. They want to ensure they will be benefiting from where they place their money and land does not fulfill this obligation.

In regards to Smith’s statement, “According to the natural course of things, therefore, the greater part of the capital of every growing society is, first, directed to agriculture, afterwards to manufactures, and last of all to foreign commerce,” I disagree with the first part but in total compliance with the last part. I think manufacturing has overcome agriculture in importance, more money can be produced for the nation through fabricating goods rather than growing products. The time frame to say construct a computer is far less than to grow an acre of corn. Relating to foreign trade I couldn’t agree more, keeping trade within the nation will benefit the specific country because money is being confined to the country. If you are constantly trading with other nations, money is being lost especially if you are importing more than exporting and that is the current situation the United States is in.