#WealthOfNations I.ii is all about the secret sauce origin story: why does the division of labor happen in the first place? #AdamSmith illustrates (in part) with doggos to hold our attention. (I.ii.2,5) 🐶 #WealthOfTweets #SmithTweets #DoggosDontTrade

Divsion of labor, Smith said yesterday, is responsible for a whole heckuva lot. But who thought of it? Nobody! It's "not originally the effect of any human wisdom, which foresees and intends that general opulence to which it gives occasion." (I.ii.1) #WealthOfTweets #SmithTweets
There's no mastermind behind economic exchange, our "propensity to truck, barter, and exchange one thing for another" (I.ii.1) arises out of our natural tendency to persuade one another and better our condition. #WealthOfTweets #SmithTweets
Yeah, there's a lot in that first paragraph. #WealthOfTweets #SmithTweets
You know what's coming, right? 🍖🍻🍞 Butchers, brewers, bakers: they don't make us things because they love us. They're not our moms. (I.ii.2) #WealthOfTweets #SmithTweets
Instead, we persuade them (with money! 💰💰💰) that it's best for them to provide what we want. Everybody wins! (I.ii.2) #WealthOfTweets #SmithTweets
This may sound cynical, but this kind of cooperation is all we've got, says Smith. The world's not made of moms. We have to connect to others by division of labor. (I.ii.2) #WealthOfTweets #SmithTweets
In "civilized"—economically developed—society, we can't be atomistic. Development only happens with division of labor, and division of labor puts us "at all times in need of the co-operation and assistance of great multitudes." (I.ii.2) #WealthOfTweets #SmithTweets
Of course, our interdependence means that we each hold a kind of power over each other. That leaves us vulnerable if the system collapses. So we'd better hope that the market system is heckin' robust. (I.ii.2) #WealthOfTweets #SmithTweets
We are so dependent on one another and our ability to persuade each other to help us through the market, rather than through personal appeals, that even a beggar can't rely entirely on the kindness of others. (I.ii.2) #WealthOfTweets #SmithTweets #WeAreAllConnected
Beggars might depend on the kindness of strangers to get money, but then they have to spend it to get the things they need. They use the market, just like the rest of us. (I.ii.2) #WealthOfTweets #SmithTweets
OK, apparently the second paragraph is a doozey, too. (I.ii.2) That's just how this book rolls. #WealthOfTweets #SmithTweets
All well and good, you're probably thinking by now, but I was promised dogs. WHERE ARE THE DOGS? Well, they're not trading with each other, we can tell you that much. 🐶🙅‍♀️💰 (I.ii.2) #WealthOfTweets #SmithTweets #DoggosDontTrade
This matters a lot! Dogs can make frens at the park, but otherwise they are useless to each other, no matter how different their skills are. But people are more useful to each other the more different we become! (I.ii.5) #WealthOfTweets #SmithTweets #DoggosDontTrade
Here's Smith at his best: What makes us different from each other? Basically, the division of labor. Not our family, our wealth, our nation, or our power. We're born equal, and our habits, customs, and education determine where we end up. (I.ii.4) #WealthOfTweets #SmithTweets
So markets and the division of labor emerge because we get good at stuff and help each other out. Division of labor makes us more different from one another. Markets make those differences the basis for cooperation. (I.ii.1–5) #WealthOfTweets #SmithTweets
Tomorrow, one of @Econtalker 's favorite sections of #WealthOfNations. Stay tuned, Smithketeers! We'll see you then!

More from @AdamSmithWorks

More from Economy

On Jan 6, 2021, the always stellar Mr @deepakshenoy tweeted, this:

https://t.co/fa3GX9VnW0

Innocuous 1 sentence, but its a full economic theory at play.
Let me break it down for you. (1/n)


On September 30, 2020, I wrote an article for @CFASocietyIndia where I explained that RBI is all set to lose its ability to set interest rates if it continues to fiddle with the exchange rate (2/n)

What do I mean, "fiddle with the exchange rate"?

In essence, if RBI opts and continues to manage exchange rate, then that is "fiddling with the exchange rate"

RBI has done that in the past and has restarted it in 2020 - very explicitly. (3/n)

First in March 2020, it opened a Dollar/INR swap of $2B with far leg to be unwound in September 2020.

Implying INR will be bought from the open markets in order to prevent INR from falling vis a vis USD (4/n)

The Second aspect is now, that dollar inflow is happening, and the forex reserves swelled -> implying the rupee is appreciating, RBI again intervened from September, by selling INR in spot markets. (5/n)
https://t.co/9kpWP7ovyM
Interesting thread, but I don't think ecosocialists or degrowthers are arguing that if German socialists had come to power the world would be green by now. Socialism is not automatically green. Eco-socialism is what it says - a green version of socialism - to be tested /1


The historical counterfactual also in not totally convincing. So let's assume Germany and Europe went socialist. The world economy would have evolved exactly the same way it did? 🤔 I doubt it, this is too deterministic. Examples: /2

We do not know if the transition from coal to oil would have taken place when it took place, the way it did. From Timothy Mitchell we know that oil was a fix for capitalism to bypass the labour strikes of coal workers. One would think that socialists would treat workers better /3

We also do not know if socialist governments would strong arm the Middle East the way capitalists did, starting wars to secure cheap oil, and setting up puppet governments. One would want to think that Rosa Luxembourg would not go down that path..../4

We also do not know if they would have continued colonial unequal exchange, extracting raw materials as cheap as possible from the rest of the world. Without cheap oil and cheap materials, it is anyone's guess if GDP and CO2 would be where it is now. /5

You May Also Like

1/12

RT-PCR corona (test) scam

Symptomatic people are tested for one and only one respiratory virus. This means that other acute respiratory infections are reclassified as


2/12

It is tested exquisitely with a hypersensitive non-specific RT-PCR test / Ct >35 (>30 is nonsense, >35 is madness), without considering Ct and clinical context. This means that more acute respiratory infections are reclassified as


3/12

The Drosten RT-PCR test is fabricated in a way that each country and laboratory perform it differently at too high Ct and that the high rate of false positives increases massively due to cross-reaction with other (corona) viruses in the "flu


4/12

Even asymptomatic, previously called healthy, people are tested (en masse) in this way, although there is no epidemiologically relevant asymptomatic transmission. This means that even healthy people are declared as COVID


5/12

Deaths within 28 days after a positive RT-PCR test from whatever cause are designated as deaths WITH COVID. This means that other causes of death are reclassified as