Adam Smith’s Four Factors of Destruction

Smith describes four factors that destroy and degrade “agriculture, the sole source of wealth and revenue of every nation.”

  • Soil Husbandry “the neglect of cultivation and improvement”
  • Subsidies & Tariffs “the fall in the real price of any part of the rude produce of land”
  • Equipment, Seeds & Fertilizer the rise in the real price of manufactures”
  • Devalued Dollar, the declension of the real wealth of the society

 all tend to lower the real rent of land, to reduce the real wealth of the landlord, to diminish his power of purchasing either the labor, or the produce of the labor of other people.

The first money was labor

Labour was the first price, the original purchase-money that was paid for all things. It was not by gold or by silver, but by labour, that all the wealth of the world was originally purchased.
Excerpt from The Wealth of Nations

It is our nature to accumulate money

The natural effort of every individual to better his own condition is so powerful, that it is alone, and without any assistance, not only capable of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions with which the folly of human laws too often encumbers its operations.
Excerpt from The Wealth of Nations