Adam Smith Response

Adam Smith explains that when demand is high, the price of a good can exceed its natural price. Smith states that it is best for stock owners to keep this success a secret. The sooner people discover that demand is high for a particular commodity, the sooner they will also attempt to sell it. If this happens, much more of the commodity will be created and the supply will outweigh the demand. This will cause workers who produce the commodity to suffer.

Adam Smith begins Chapter X of Book I with an examination of advantageous and disadvantageous work. This theory is similar to the supply and demand theory I have discussed above, but for workers instead of products. If more advantageous work was offered due to a high demand for a product, people would, obviously, attempt to receive this work. So many people would leave their posts that eventually supply would exceed demand and this work would become less advantageous and the worker would once again seek a different occupation. Smith goes on to clarify that this event would only occur "where there was perfect liberty" and people were free to change occupation as many times as they saw fit (111). Smith seems to be implying that we must give up some liberty in order to become an efficient society. This made me wonder, has the division of labor stripped each worker of some inherent liberties? Smith states that it is in "every man’s interest" to attempt to receive the advantageous work, so why doesn’t he? Could it be that every worker is aware of their role in society and recognizes the benefits of interdependence? Or, perhaps, is Rousseau correct in criticizing commercial society for taking away our natural liberty?