“What Is Your Labor Price?” [Reflections On Todd intro (p.20) to “Adam Smith's Book An Inquiry Into The Nature And Causes Of The Wealth Of Nations Indianapolis : Liberty Classics, 1981 (Vol.I and II) Book 1]

“What is a Labor Price that meets your needs?”
Smith asks – and if this price somehow exceeds
What can be gained in net exchange of goods,
You’ve got a problem (laid off) – understood?

Smith says – enough to maintain while you work –
That’s food, and shelter, clothing, maybe perks
Like entertainment, cell phones and the like,
And a transportation – baseline; seems all right.

Then he adds on the cost of knowledge-base;
The wear and tear on self if death’s the case;
The cost of making changes if it flops;
That should suffice to live life as one ought.

Of course, that’s base of what one needs to meet
The cost of living – now one has to seek
Some way of easing cost to meet those needs –
Make lots of buggy whips to urge folks steeds?

Let’s say one whip-sale made will do the trick;
(That’s one per week) beyond the costs of it;
But then you hear that in a city near
There’s buyers all lined up, now that they hear –

The shop which you supply has best of brand;
No other whip quite like it in the land;
You can’t go faster keeping quality,
So get your buddy’s help in “Factory”.

But now two people’s wages must come in –
That’s two whips made each week, so you begin;
Then buddy says, “Hey, let’s split up the tasks,
And that way we can work to make them fast.”

As there’s still buyers wanting whips like yours,
Divided labor helps you make much more;
Now you have added income, buddy asks,
“Could we add in more labor, split more tasks?”

So pretty soon your whole community
Is working at whip-making factory;
You spread to distant cities, add more staff,
And even raise your wages – you all laugh.

But word gets out that whips are just the thing
To manufacture, better wages bring
To other folks; now there’s two factories,
And so on – you start selling overseas.

And then the car replaces buggy’s horse –
No need for whips (of quality, of course);
Now all those folks with labor-price-based-needs,
Must pack their bags and other work now seek.

I see all this is based on fair exchange;
Without it, everything at work must change;
For it’s the focal-point, the bottom line –
If that exists all else can work out fine.

I see that base-exchange is central key
To growing up one’s gross economy;
Your labor-price (defined as living-needs)
Are one “Cost-factor” in a “Factory”.

But now there are more buggy whips to buy,
And cash to spend on them so greater size
Is big balloon encircling all the world,
With all its commerce, busyness, and whirl.

Thanks Lord for this.

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