Money Quote by Adam Smith
““The common complaint, that luxury extends itself even to the lowest ranks of the people, and that the labouring poor will not now be contented with the same food, clothing, and lodging, which satisfied them in former times, may convince us that it is not the money price of labour only, but its real recompense, which has augmented. Is this improvement in the circumstances of the lower ranks of the people to be regarded as an advantage, or as an inconveniency, to the society?””
About This Quote
Source Book: The Wealth of Nations, 1776
The quote questions whether rising living standards for the poor are a true benefit or a societal burden, suggesting that higher wages may reflect increased value rather than just cost.
In simple terms: Higher wages may be a benefit or a burden.
Key Takeaway
Consider the broader impact of wage growth.
Themes
economics
social class
welfare
inequality
labor
public policy
Mood
thoughtful
analytical
critical
Type
philosophical
political
economic
When to use this quote
- policy debate
- labor negotiations
- social reform
- economic analysis
Key Concepts
real wages
social welfare
economic incentives
distributional effects
Questions to Reflect On
- Are higher wages always beneficial for society?
- How do we balance worker welfare with economic stability?
A Different Perspective
Higher wages can also raise prices and create inflationary pressure.
![“We have no paupers ... The great mass of our [United States] population is of laborers; our rich, who can live without labor, either manual or professional, being few, and of moderate wealth. Most of the laboring class possess property, cultivate their own lands, have families, and from the demand…” quote by Thomas Jefferson](https://sms4smile.com/quotes/img-quotes/d26/thomas-jefferson-43_class_we-have-no-paupers-the-great-mass-of-our_389092.jpg)
![“Luxury is dangerous to people who have never known it and to whom its temptations are held out too suddenly. [...] Just as the advantage of culture is that it enables you to talk nonsense with distinction, so the habit of luxury allows you to regard its frills and furbelows with a proper…” quote by W. Somerset Maugham](https://sms4smile.com/quotes/img-quotes/3d8/w-somerset-maugham-237_quote_luxury-is-dangerous-to-people-who-have-n_1262444.jpg)
