Text Anaylsis 2

TEXT ANALYSIS 2
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The highlighted passage was gotten from the works, An Inquiry into the Nature and Causes of the Wealth of Nations, authored by Adam Smith. The extract is found explicitly in Chapter II of Restraints Upon Importation from Foreign Countries of Such Goods as Can Be Produced at Home.
The work from which the passage was obtained first appeared in Adam Smith’s “The Wealth of Nations.” The latter is considered as an extension of the philosophical subject established by The Theory of Moral Sentiments. The crucial problem that Smith discourses here is the way in which the internal fight between the desires and the “impartial spectator” leaves its impacts in the higher ground of history itself, both in regards to the instant features of the historical stage typical of Smith’s era and the long-run growth of the society. The solution to this problem is provided in Book V where Smith summarizes the key four steps of organization: rude, nomadic agriculture, manorial or feudal farming, commercial interdependence. Smith made it clear that institutions suitable to its demands complemented each of the phases.
According to the context of the book in which the passage was obtained, the passage emphasizes the works objective of achieving the home market monopoly and driving the society’s general industry towards an advantageous direction. Rendering to the works, the home market domination could be secured through limiting the importation of commodities from foreign nations similar to those made at home by either placing absolute prohibitions or by enforcing heavy duties on their importation.

The high taxes imposed on the imported goods benefit the farmers of the given products. Thus, this home-market monopoly generally issues prime motivation to the concerned industries, helping the society in the long run. Whether the strategy increases the society’s general sector or provides it with the whole gainful direction is, however, not very evident.
The passage is essential in summarizing the overall concept of the book from which it was obtained. The passage emphasizes, Smith’s idea that every nation should naturally incline to engage its capital in a way that likely issues the domestic industry the total support, and to provide employment and income to a substantial number of its citizens. According to Smith, every person who directs his/her wealth in the backing of the local industry, essentially does so to promote the industry, that it may have the greatest imaginable worth. The yield of an enterprise is its input to the materials or subject upon which it is established. Also, an individual directs his/her capital in favor of industry only with the intent of earning a profit; and the individual will forever, struggle to engage the money in support of the industry that promises the utmost value.
Even though the passage and the works highlight methods that are favorable to realizing local market monopoly and great profits through heavy taxing and prohibition, the tactics introduce some grade of actual disorder to the national development which will be hard to eradicate afterward if the methods are not well governed and directed. For instance, the implementation of the changes should not be sudden but must be done gradually, slowly, and after a lengthy warning. Additionally, the duties implemented to diminish or prevent importation, are apparently as damaging to the customs revenues as the liberty of trade.
Bibliography
Adam, Smith. An Inquiry into the Nature and Causes of the Wealth of Nations. BiblioBazaar, LLC, 2009
Kim, Kwangsu. “Adam Smith’s theory of economic history and economic development.” The European Journal of the History of Economic Thought 16, no. 1 (2009): 41-64.