POLITICAL ECONOMY. 



A SPECULATIVE science in which the wealth of 

 nations is considered, and the causes of its 

 increase or diminution conjectured. It has 

 also been called the Philosophy of Statistics. 



Division of Produce. 



The whole annual produce of the land and labour 

 of every country, or what comes to the same thing, 

 the whole price of that annual produce, naturally 

 divides itself into three parts : viz. 



1. The rent of land. 



2. The wages of labour. 



3. The profits of stock. 



Indications of Prosperity. 



There are four circumstances which are the most 

 certain indications of increasing wealth ; namely : 



1. The accumulation of capital. 



2. The increase of population. 



3. Improvements in agriculture. 



4. The high market price of raw produce, occa- 

 sioned either by a great demand for it in foreign 

 countries or by the extension of commerce. 



Taxes. 



Taxes on land are paid by the proprietor alone. 

 Extend this reasoning, all taxes whatever fall on the 

 neat surplus of the annual reproduction. Adam 

 Smith admits that no taxes can fall on the wages of 

 labour, even though paid by the labourer, as his 

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