An Inquiry into the Nature and Causes of the Wealth of Nations.

penultimate lifetime edition

The penultimate lifetime edition of Smith's masterpiece, the 'first and greatest classic of modern economic thought' (PMM).

As the title explains, the work is fundamentally an investigation into what makes certain nations prosperous. Smith's originality lies in locating the roots of this comparative wealth in the specialisation of labour which had occurred in developed economies, for the 'annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniences of life which it annually consumes, and which consist always, either in the immediate produce of that labour, or in what is purchased with that produce from other nations' (Introduction).

'The history of economic theory up to the end of the nineteenth century consists of two parts: the mercantilist phase which was based not so much on a doctrine as on a system of practice which grew out of social conditions; and the second phase which saw the development of the theory that the individual had the right to be unimpeded in the exercise of economic activity. While it cannot be said that Smith invented the latter theory... his work is the first major expression of it. He begins with the thought that labour is the source from which a nation derives what is necessary to it. The improvement of the division of labour is the measure of productivity and in it lies the human propensity to barter and exchange... Labour represents the three essential elements—wages, profit and rent—and these three also constitute income. From the working of the economy, Smith passes to its matter—'stock'—which compasses all that man owns either for his own consumption or for the return which it brings him. The Wealth of Nations ends with a history of economic development, a definitive onslaught on the mercantile system, and some prophetic speculations on the limits of economic control' (PMM).

Fourth edition; 3 vols; 8vo (21.5 x 14 cm); occasional light spotting; contemporary tree calf, covers with distinctive ball-an-chain gilt roll, expertly rebacked preserving the original gilt-tooled spines, contrasting rd and green morocco lettering-pieces, a little rubbed at extremities, spine bands on vols I & II slightly split, a very good set; viii, 499, [1]; vi, 518, [4]; v, [1], 465, [51]pp.

ESTC T96679; Tribe 30.