ABSTRACT
This chapter follows the chronology of Book I of the Wealth of Nations: i) the analysis of the division of labor at macroeconomic (i.e. social division) and microeconomic (i.e. manufacturing division) levels, and sets out universal economic principles: “labor” as the exclusive foundation of the theory of value, where the division of labor as the historical embodiment of “labor-value” specify the levels of development of societies, “savage nations” (without division of labor) and “civilized nations” (with division of labor). ii) The two dimensions of “labor-value” theory are also defined: the quantitative theory of labor, i.e. the quantity of labor a commodity incorporates; and the disutility theory of labor, i.e. the quantity of labor a commodity makes it possible to obtain on the market. This division of labor, combined with the advantage of exchange and the desire for unlimited enrichment, leads to opulence for individuals and nations alike, generalized by the division of labor, making exchange mutually advantageous. In this way, Smith demonstrates the identification of passions and interests in an opulent society, guaranteeing prosperity through the fulfillment of personal interests.
