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Re: theory of interest



For Smith, profit was mostly "wages of superintendence."  He also said that
competition would drive down the rate of profit, but keep in mind that the
profit was on "stock."  The workers owned their own tools.  Employers just gave
them the wherewithall to survive.

In any case, he did not have a consistent theory.

"Devine, James" wrote:

> I'm not a Adam Smith scholar: did he believe that the rate of profit would
> go to zero, so that capitalism would be in essence transformed into simple
> commodity production?

--

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx





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