Leaving Assignments To Compare And Contrast

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Smith with big energy supported a high salary as he considered that it best of all corresponds to conditions of sustained economic growth. Rather high salary (especially" piece") is the most important incentive of growth of labor productivity. It, in turn, strengthens accumulation of the capital and increases demand for work. It categorically denied a popular belief that the high salary does workers lazy and reduces incentives to work. Besides, he urged businessmen not to be afraid of growth of a salary as the spontaneous mechanism all the same will limit this growth.

Smith wrote:" Only in hands of individuals the capitals, some of them, naturally start collecting, seek to use them to busy hardworking people whom they supply with materials and a subsistence in calculation to receive benefit on sale of products of their work or that these workers added to the cost of the processed materials" historical process of emergence of capitalism is accurately expressed In this situation. Smith said that from the goods cost created by work and determined by number of this work the worker gets in the form of a salary only some part. Other part of the cost added by work represents profit of the capitalist businessman. In certain cases it it has to give part in the form of a land rent, part - in the form of loan percent if used the loan capital.