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Economic Progress Without Capital Accumulation

In: Adam Smith and the Wealth of Nations

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  • Daniel Diatkine

    (University of Paris-Saclay, Univ Evry)

Abstract

Smith distinguish the “early and rude state” and “advanced state” of societies. Smith’s early state, he actually describes an economy in which the division of labour exists and hence the exchange of commodities. This economy is characterised by the fact that all the agents in this state work and exchange goods. Smith explains enrichment by the progress of the division of labour. This in turn depends on extent of the market. So the so called early state of societies not only designates a historical stage, but above all a theoretical economy.

Suggested Citation

  • Daniel Diatkine, 2021. "Economic Progress Without Capital Accumulation," Palgrave Studies in the History of Economic Thought, in: Adam Smith and the Wealth of Nations, chapter 0, pages 129-158, Palgrave Macmillan.
    • Handle: RePEc:pal:pshchp:978-3-030-81600-1_6
    DOI: 10.1007/978-3-030-81600-1_6
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