regarding Adam Smith]
by making use
of the swiftness of the greyhound, etc. The effects of these different
talents or grades of intelligence, for want of the power or disposition
to barter and exchange, cannot be brought into a common stock, and do
not in the least contribute to the better accommodation and conveniency
of the species. Each animal is still obliged to support and
defend itself, separately and independently, and derives no sort of advantage
from that variety of talents with which nature has distinguished its fellows.
Among men, on the contrary,the most dissimilar genuses are of use to one
another; the different produces of their respective talents, by
the general disposition to truck, barter, and exchange, being brought,
as it were, into a common stock, where every man may purchase whatever
part of the produce of other men's industry he has occasion for. [...]"
it is the power of exchanging that gives occasion to the division
of labour, so the extent of this division must always be limited
by the extent of that power, or, in other words, by the extent
of the market. When the market is very small, no person can have any
encouragement to dedicate himself entirely to one employment, for want
of the power to exchange all that surplus part of the produce of his own
labour, which is over and above his own consumption, for such parts of
the produce of other men's labour as he has occasion for...."
In an advanced state of society
man thus lives by exchanging and becomes in some measure a merchant,
and the society itself grows to be what is properly a commercial
society". (See Destutt de Tracy) [Elemens d'ideologie,
Paris, 1826, pp. 68 and 78]: "Society is a series of
reciprocal exchanges; commerce contains the whole essence of society."
... The accumulation of capitals mounts with the division of labour, and
So much for Adam Smith.
family produced all that it consumed, society could keep going although
no exchange of any sort took
being fundamental, exchange is indispensable in our advanced
state of society. The division of labour is a skilful deployment of man's
powers; it increases society's production--its power and its pleasures
but it curtails, reduces the ability of every person taken individually.
Production cannot take place without exchange."
Thus J. B. Say.
inherent in man are his intelligence and his physical capacity for work.
Those which arise from the condition of society consist of the capacity
to divide up labour and to distribute different jobs amongst
different people ... and the power to exchange mutual services
and the products which constitute these means. The motive which impels
a man to give his services to another is self-interest--he requires a
reward for the services rendered. The right of exclusive private property
is indispensable to the establishment of exchange amongst men. "Exchange
and division of labour reciprocally condition each other."
Mill presents developed exchange - trade - as a consequence of
the division of labour.
agency of man can be traced to very simple elements. He can, in fact,
do nothing more than produce motion. He can move things towards one another,
and he can separate them from one another: