Issue #69
Last Update October 31, 2010
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Reviews The Wealth of Nations by David Katz February 18, 2008 The Wealth of Nations was written by Adam Smith in 1776, and remains one of the best explorations of the theory of free market economics. Its full title “An Inquiry into the Nature and Causes of the Wealth of Nations” provides a hint of the scope of this book: not only does it try to explain how free markets operate, but it also explores the impact of free and not-so-free economic systems on the resulting prosperity of the nation. The style and length of this work is off-putting to the modern reader. J. P. O’Rourke, the conservative humorist and thinker, has set out to remedy this situation and make Adam Smith’s insights available to all.
On the whole, O’Rourke does a commendable job. What he has produced is not a condensed, Classics Comic version of the famous tome, but a reasoned discussion of Smith’s argument, and the place of this book in the wider scope of Smith’s writings. Some surprising conclusions emerge. Rather than being the patron saint of Greed is Good capitalism and the megacorporation, Smith had a horror of concentration of power, whether it be governmental power, corporate power or private power. No friend of tariffs, whether to raise money for the government or for protectionist purposes, he nevertheless believed that labor was the key component in any venture, and that any situation in which the laborer was deprived of his fair share of the profits of the venture was one which ultimately would damage the economy and reduce wealth.
Placing great stress on the efficiencies of the division of labor, he was also aware of the deadening effect of repetitious, tiny actions on the morale, and therefore effectiveness, of the worker. Yet he also recognized that the migration of jobs and manufacturing functions from areas of lesser efficiency to areas of greater efficiency (outsourcing, in modern terminology) ultimately benefitted everyone, painful in the short term as such transitions might be.
It is to O’Rourke’s credit that his presentation of Adam Smith’s views is comprehensive, even where it might conflict with O’Rourke’s conservative, quasi-libertarian free market capitalist views. He makes no attempt to conform Smith’s views to his own. Instead, his tone indicates a willingness to be convinced by Smith where they differ. O’Rourke brings his gift of humor to what, in other hands, might be a dry presentation, and makes exciting what a lesser writer might make dull. (Smith himself was pretty dull as a writer, but his ideas were exciting, and O’Rourke makes this plain.) The only places where O’Rourke falters is in his snide asides hitting at liberal politicians, entertainment figures and columnists. Not only aren’t these particularly funny, but they disrupt the flow of O’Rourke’s explication of Smith. A sterner-willed editor might have improved the book.
“On the Wealth of Nations” is part of the Books That Changed the World series published by Grove/Atlantic, a series which includes Karen Armstrong on the Bible, Christopher Hitchens on Thomas Paine’s writings, Janet Brown on Darwin’s “Origin of Species”, Bruce Lawrence on the Koran and five others. It is well worth reading, regardless of your politico/economic stance.
“On the Wealth of Nations”, by P. J. O’Rourke Grove Atlantic ISBN-10: 0-8021-4342-3
New York Stringer is published by NYStringer.com. For all communications, contact David Katz, Editor and Publisher, at david@nystringer.com