Adam Smith: relative inequality is absolute poverty

[moorobot]

It is very strange that many economists who call them selves disciples of Adam Smith do not introduce the importance of relative inequality, both psychologically and in terms of real freedom, in both the labor and consumer goods markets, in their discussion. Here are a few of my favorite quotes by him:

"...in every part of Europe, twenty workmen serve under a master for one that is independent...

What are the common wages of labour depends on everywhere upon the contract made between these two parties, whose interests are by no means the same. The workmen desire to get as much, the masters to give as little as possible...
It is not, however, difficult to foresee which of the two parties must, upon all ordinary occasions, have the advantage in the dispute, and force the other into a compliance with their terms ...in all such disputes the masters can hold out much longer. A landlord, a farmer, a master manufacturer, or merchant, though they did not employ a single workmen, could generally live a year or two upon the stocks which they have already acquired. Many workmen could not subsist a week, few could subsist a month, and scarce any a year without employment. In the long run the worker is as necessary to his master as the master is to him; but the necessity is not so immediate."

From the Wealth of Nations, 1776, emphasis added.

In other places, he discussed another one of the consequences of the 'master' being able to decide the terms and conditions of labor. Pointing out that people's intellectual capacities "are necessarily formed by their ordinary employments...the man whose life is spent in performing a few simple operations...has no occasion to exert his understanding...He naturally loses, therefore, the habit of such exertion, and generally becomes as stupid and ignorant as it is possible for a human creature to become."


According to Smith, local conspicous consumption standards also determine what goods and services people consider necessary, as a basic component of human nature:

"By necessaries I understand not only the commodities which are indispensably necessary for the support of life, but whatever the custom of the country renders it indecent for creditable people, even of the lowest order, to be without. A linen shirt, for example, is, strictly speaking, not a necessary of life. The Greeks and the Romans lived, I suppose, very comfotably, although they had no linen. But in the present times, through the greatest part of Europer, a creditable day-labourer would be ashamed to appear in public without a linen shirt, and the want of which would be supposed to denote that disgraceful degree of poverty which, it is presumed, nobody can well fall into without extreme bad conduct. Custom, in the same manner, has rendered leather shoes a necessary of life in England. The poorest creditable person of either sex would be ashamed to appear in public without them."

Of course, since the absolute standard of living is much higher in "rich" democracies today than it was in 18th century Scotland, we have many more 'necessaries' today...

[bluffe]

Yes, unlike Smith, few fiscal conservatives understand the humiliation that poverty carries with it. That humiliation is the reason why poor single mothers spend their last money on Nike sneakers for their sons. These mothers know what it feels like to be visibly poor.

[WillMagic]

[ QUOTE ]
Yes, unlike Smith, few fiscal conservatives understand the humiliation that poverty carries with it. That humiliation is the reason why poor single mothers spend their last money on Nike sneakers for their sons. These mothers know what it feels like to be visibly poor.

[/ QUOTE ]

Seriously. That's why it's so nice of liberals to advocate minimum-wage laws that keep poor people in poverty, and welfare to further incentivize poverty and unemployment.

Oh, wait...

[vulturesrow]

Is it cherry picking season already?

[FlFishOn]

I stuck it to the man when I was 22. I started my own business with next to zero capital and built it up into a dozen year success. Anyone with desire and just enough intelligence can do it. Being dull is a huge impediment. For that reason I would like to promote the procreation of bright people and discourage the dull from breeding, in the name of egalitarianism.

[The once and future king]

[ QUOTE ]
Anyone with desire and just enough intelligence can do it.

[/ QUOTE ]

1. Scarcity of recources.
2. Competition.
3. Vast majority of Business Start ups fail.
4. Sample size to small.
5. 100% consensus amongst all anaylists/philosopher/thinkers of any persuasion that the worst way to make conclusions about the universe is to reduce it entirely to conclusions based upon your own anecdoctal experience.

[FlFishOn]

You are free to fail. No one will stop you.

[The once and future king]

You are free to remain ignorant.

[haarley]

[ QUOTE ]
1. Scarcity of recources

[/ QUOTE ]
What resourses are scarce?
[ QUOTE ]
2. Competition.

[/ QUOTE ]
There are plenty of fields with little or no competiton. And even if there is competition is that really a bad thing?
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3. Vast majority of Business Start ups fail.

[/ QUOTE ]
Why do they fail?
[ QUOTE ]
4. Sample size to small.


[/ QUOTE ] Just a convenient way to always dismiss real life experience?
[ QUOTE ]
5. 100% consensus amongst all anaylists/philosopher/thinkers of any persuasion that the worst way to make conclusions about the universe is to reduce it entirely to conclusions based upon your own anecdoctal experience.

[/ QUOTE ] 100% concensus that using the failure of others as the basis for your failure without even trying will always lead to your continued failure?

[The once and future king]

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What resourses are scarce?

[/ QUOTE ]

Wait for it............

ALL OF THEM.

Seriously the dumbest reply evaaaar on this forum. You are to dumb to contribute in any meaningfull way to this topic.

You are the weakest link.
Goodbye.

Just to add in seriousness, is that all the objective factual evidence is that only a very few can do it regardless of ability. For the record I am one of those people.