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The Wealth of Nations by George H. Smith
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Notes:
- Competition keeps market price to a minimum level, which is the natural price. When government intervenes the market price goes up.
- Taxes increase the price of a market commodity. This decreases the wealth, happiness and ease of the country.
Things which have the greatest value in use, have little value in exchange. Things which have the greatest value in exchange have little value in use. (Water-Diamond paradox) (Value in use vs value in exchange)
- Cheapness is the same thing as plenty, scarcity makes a commodity expensive.
- Progressive state => People are the happiest and most comfortable. Stationary state => Dull. Declining state => melancholy.
- Wages rise in a progressive economy but profits fall.
- Wages, profit and rent are the components of market price. These represent the 3 great economic classes laborers, capitalists, land owners.
- Rent and wages increase in a progressive economy, because spontaneous economic order is the foundation of economic progress, landlords and laborers should have natural interest in free market.
- Land owners are the most secure, happy of economic classes, because they do not have to spend time or effort to get paid.

Productive Labor vs Unproductive Labor:
- Manufacturer adds value to the material they work on. (Productive)
- Menial labor doesn't add value to commodity. (Unproductive)
- Productive labor adds value to the whole economy.
- Unproductive labor value perishes as soon as its performed.
- Unproductive labor, service occupation: Lawyer, Physician, Churchman, Scholar, Actor, Singer
- Productive vs unproductive labor has no correlation with how necessary, useful or honorable a profession may be.

- For economic growth and happiness, government is the problem, not the solution. Government is the greatest reason for unproductive labor.
- Invisible Hand: In a free market economy, self-interested individuals operate through a system of mutual interdependence to promote the general benefit of society at large. Voluntary trades in a free market produce unintentional and widespread benefits. These benefits are greater than those of a regulated, planned economy.
- The invisible hand, can operate only if the rules of justice: Life, Liberty, Property are enforced. This is the primary function of government.
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Reading Progress

January 24, 2018 – Started Reading
January 31, 2018 – Shelved
January 31, 2018 – Shelved as: to-read
January 31, 2018 – Finished Reading

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