As a result, Smith turns out that the price of goods includes not only income but also advanced capital.
Smith attached great importance to high wages, saying that it encouraged workers to work more productively, and strongly disagreed with Malthus, who considered worker poverty inevitable. Thus, the main advantage of Smith’s theory was that it contributed to the movement through the welfare of society as a whole.
Income theory
In the theory of wages, A. Smith pointed out that of the value of goods created by labor and a certain amount of this labor, only a part of the worker remains in the form of wages for effort.
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