The excerpt below is from Adam Smith's The Wealth of Nations. Which of his economic philosophies can be seen in modern free enterprise systems?
It is natural that what is usually the produce of two days' or two hours' labor,
should be worth double of what is usually the produce of one day's or one
hour's labor. If the one species of labor should be more severe than the other,
some allowance will naturally be made for this superior hardship, and the
produce of one hour's labor in the one way may frequently exchange for that
of two hours' labor in the other. ... In exchanging the complete manufacture
either for money, for labor, or for other goods, over and above what may be
sufficient to pay the price of the materials, and the wages of the workmen,
something must be given for the profits of the undertaker of the work who
hazards his stock in this adventure. The value which the workmen add to the
materials, therefore, resolves itself in this ease into two parts, of which the
one pays their wages, the other the profits of their employer upon the whole
stock of materials and wages which he advanced. ...
1. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations (London
Methuen & Co Ltd1904), Book Chapter VII. Book V. Chapter X,
http://www. econlib. org/library/Smith/smWNCover html
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