| Wealth of Nations Home Book I Book II Chapter I Chapter II Chapter III |
Book II:
OF THE NATURE, ACCUMULATION, AND EMPLOYMENT OF STOCK INTRODUCTION Smith opens up Book II by stating that in primitive societies, stock is not necessary, as there are always animals that can be hunted, and plants gathered for food, clothing, and shelter. Then he argues that before division of labor is introduced, there must already be stock stored up for the worker to sustain themselves until they can replenish it with their work. Then because stock must precede division of labor, similarly if division of labor is to become more sub-divided, more stock must be accumulated to purchase the extra tools and pay for the extra wages. Since stock is required to improve division of labor, and thus productivity, the accumulation stock leads to more productivity. In Book II, Smith has written five chapters that will discuss the nature, effects, and applications of stock. In the first chapter he will show how stock divides up itself. In the second he will discuss the nature fo money, as a special type of stock possessed by society. In the third and fourth he will examine how stock operates. And in the fifth he will discuss how different effects that can be had with different employments of that stock. Chapter I: Division of Stock |