Commodity Quote by Adam Smith
“In raising the price of commodities, the rise of wages operates in the same manner as simple interest does in the accumulation of debt. Our merchants and master manufacturers complain much of the bad effects of high wages in raising the price, and thereby lessening the sale of their goods, both at home and abroad. They say nothing concerning the bad effects of high profits; they are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.”
About This Quote
Source Book: The Wealth of Nations, 1776
High wages raise commodity prices like simple interest raises debt, while merchants blame wages but ignore their own profit gains.
In simple terms: High wages increase prices; merchants blame wages, not profits.
Key Takeaway
Recognize bias in economic complaints.
Themes
economics
bias
inflation
Mood
critical
analytical
Type
economic
political
When to use this quote
- policy debates
- business strategy
- labor negotiations
- consumer pricing
- market analysis
Key Concepts
price dynamics
profit motive
interest analogy
Questions to Reflect On
- How do profit motives shape public economic narratives?
- What policies can balance wage growth and price stability?
A Different Perspective
Merchants may exaggerate wage impacts to deflect from profit issues.
