Principium Volume II, Book 8, Quote 799, 801, 803

799. (5-2-2010) (In this next section, the idea is that the owner of the capital, assuming the risks, wants a proportional profit which the worker provides as part of his ability to work. That is why the employee will never by as successful as the business owner in charge of employees.)ATJ…the whole produce of labour [sic] does not always belong to the labourer. He must in most cases share it will the owner of the stock (capital)ATJ which employs him.

- Adam Smith – The Wealth of Nations, 1776


801. (5-3-2010) (Adam Smith also describes whom he calls a “spendthrift”)ATJ …unless perhaps the borrower is a spendthrift, who contracts a second debt in order to pay the interest of the first.

- Adam Smith – The Wealth of Nations, 1776

(I would describe our current government and elected officials as “spendthrifts” and as taking the productive capacity of this country and squandering it on elaborate wealth redistribution plans for not only this country’s idle, but for the idle of other countries as well. Taking from the industrious by coercive taxation, regulation, and fee requirements will disincentivize them, as they see the idle receive what their labor did provide. The idle, therefore, are not incentivized for they perceive the wealth they receive as the gifts of a benevolent authority and not as the stolen property of the industrious.)ATJ


803. (5-5-2010) (This next is an important distinction, even when considering a government monopoly.)ATJ A monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufacturers. The monopolists, by keeping the market constantly under-stocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emolument, whether they consist in wages or profit, greatly above their natural rate. The price of monopoly is upon every occasion the highest which can be got. The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion, indeed, but for any considerable time together. The one is upon every occasion the highest which can be squeezed out of the buyers, or which, it is supposed, they will consent to give: the other (competition)ATJ is the lowest which the sellers can commonly afford to take, and at the same time continue their business.

- Adam Smith – The Wealth of Nations, 1776

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