The Wealth Of Nations 19
Book 3 Chapter 1
Of the Natural Progress Of Opulance
A Few Definitions To Begin
To be sure, here is a definition of Opulance.
Opulance – Wealth as evidenced by sumptuous living.
Okay, let’s get clear about sumptuous.
Sumptuous – Of a size or splendor suggesting great expense; lavish
And, how about lavish for good measure.
Lavish – Characterized by or produced with extravagance and profusion
So, Smith writes in this chapter about the natural progression of extravagance, lavish and opulent living.
Commerce Basics
To summarize, the commerce of all societies is driven by the fundamental arrangement of goods moving from the country to the city and manufactured goods moving from production to everyone that needs them.
As discussed in a prior chapter, the movement of these goods and service is fueled by the effectiveness of the transportation systems and effectiveness of the distribution network.
You can see the system at work every time you get on the highway and watch semi tractor trailers zipping by.
More commonly now, money is exchanged for the good from the country and manufactured products.
The Obvious Improvements
As this exchange between the country and technology continues over time, great efficiencies develop and provide something not found in most of human history. That something is disposable time in a quantity never imagined by anyone other than a few “royals”.
In time farming becomes more efficient because the equipment manufactured to do it is better and better. In turn more yield comes from the farm which lowers the prices and ease of obtaining them.
Likewise, manufacturing technology continues to improve and products are made more efficiently and at better prices.
Transportation and sales distribution follows similar patterns of improvement.
All of this is designed to make life easier and better. At least this is the idea.
Microchip Supercharger
Adding to the modern version of this magnificent progression is the power of the microchip.
This tiny little device is marshaling in the collapse of bureaucracies in business, government and every other walk of life. This is adding to making the systems more efficient as they become more tailored to individuals rather than one size fits all.
A Natural Progression – International Trade
Once the needs of the nation are met, producers of goods and services begin taking their products abroad to find greener pastures. Or as in the miracle of the Chinese economic boom, competitive goods and services are exported while most needs are home are largely unmet.
Smith puts it well when he writes, “According to the natural course of things, therefore, the greater part of the capital of every growing society is, first, directed to agriculture, afterwards to manufactures, and, last of all to foreign commerce. ”
This international trade is very good as it introduces external capital that can improve the lives of the local population.
Potential Opulance Challenges
A few questions to consider regarding all this free time and opulance.
How does the population use the extra time and means?
Are the people spending their wealth only on feeding insatiable appetites?
Do the people use the wealth to build up or tear down the moral structure of the society?
Does the nation use its wealth to build bombs and make war?
We have built wealth, what are we going to do with it?
God Bless You and God Bless America!
