The Wealth of Nations Video Series

In this video, we dive into the "Commercial System" of political economy, focusing on the historical perspective of wealth, trade, and the role of gold and silver. We explore how different nations and periods approached economic prosperity, with particular attention to the belief that wealth is simply gold and silver. From John Locke’s theories on money to the evolution of mercantilist policies, we examine how governments and merchants navigated the complexities of trade. Discover the importance of foreign trade, the balance of trade, and how European nations sought to accumulate gold and silver to fund wars and maintain prosperity. We also highlight the rise of commercial systems in Europe after the discovery of new trade routes and how these influenced global economic dynamics. By the end of the video, you’ll have a clearer understanding of how early economic thought shaped modern political economies. Get the original book: https://amzn.to/3W5xeku 00:00 - Introduction to the Principles of Commerce 00:14 - The Goals of Political Economy 00:33 - Commerce vs. Agriculture 00:52 - The Nature of Wealth 01:27 - Historical Perspectives on Wealth 01:53 - John Locke's View on Money 02:16 - The Role of Gold and Silver in Trade 02:40 - European Policies on Gold and Silver 03:00 - Merchants’ Arguments Against Restrictions 03:40 - The Balance of Trade 04:22 - The Shift in Focus from Gold to Trade 04:32 - The Importance of Domestic Trade 05:10 - The Flexibility of Gold and Silver 07:22 - The Real Wealth of a Nation 08:54 - Financing Wars Through Trade 10:38 - The Role of Manufacturing in War 12:09 - Historical Accumulation of Treasure 12:44 - The Benefits of Foreign Trade 13:17 - The Impact of the Discovery of America 13:53 - Trade with Asia 14:48 - Misconceptions About Wealth 15:34 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku In the aftermath of the Roman Empire's collapse, the rise of towns and commercial centers began to transform rural Europe. These towns created new markets for raw materials, driving agricultural production and land improvements in the surrounding countryside. Merchants, with their wealth and willingness to invest, played a crucial role in this process, focusing on productive land rather than luxury. This shift in land management also brought about a change in governance, with commerce offering a more stable environment for landowners and tenants. The feudal system, which once granted landowners direct control over their tenants, began to lose its grip as towns gained power and influence. Over time, long-term leases and tenant independence became more common, leading to a reduction in the power of landlords and a more stable government. This period marks the slow but significant emergence of a modern economic and political landscape in Europe. 00:00 - Introduction to How Commerce in Towns Improved the Country 00:19 - Market for Goods 00:47 - Wealth for Land Improvement 01:26 - Better Governance and Security 02:47 - The Feudal System and Its Impact 03:47 - The Role of Commerce in Shaping Power 04:49 - Conclusion on the Feudal System 09:21 - Agriculture vs. Commerce 09:46 - Closing Remarks

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku In the aftermath of the fall of the Roman Empire, European cities and towns began to rise despite a period of chaos and disarray. Initially, these towns were populated by poor tradesmen and craftsmen, often living in servile conditions. However, over time, these towns gained important rights, such as the ability to marry freely, inherit property, and trade without the interference of local lords. This newfound independence was driven by practical needs: kings and rulers saw towns as key allies in their struggles against barons and feudal lords. As towns grew, they became self-governing entities, with local councils and militias, offering protection and security to their inhabitants. This laid the foundation for the rise of manufacturing and trade, especially in cities like Venice, Genoa, and Pisa, which thrived through commerce during the Crusades. The development of urban centers marked the beginning of Europe’s transition toward a more industrialized society. 00:00 - Introduction to the Rise of Cities after the Collapse of Rome 00:13 - Post-Roman Empire Cities and Towns 00:45 - Rights and Privileges of Towns 01:05 - Taxes and Exemptions 01:58 - Organization and Self-Governance 02:23 - Practical Reasons for Privileges 03:03 - Independent Republics 03:24 - Influence on Kings and Parliaments 03:51 - Economic Growth and Security 04:32 - Trade and Wealth Accumulation 05:03 - Italian Cities and the Crusades 05:29 - Local Manufacturing and Trade 06:18 - Development of Manufacturing 07:10 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku After the fall of the Roman Empire, agriculture in Europe faced a significant decline. The collapse of trade between towns and the countryside, coupled with the concentration of land in the hands of a few wealthy landowners, led to stagnation in farming. The primogeniture law and entails, which kept estates intact and prevented land from being divided or sold, prevented agricultural progress. Landlords focused on luxury rather than improving their estates, while tenants—often slaves or peasants—had little incentive to enhance the land they worked. Over time, systems like the metayer system emerged, allowing tenants to work land for a share of the produce, but they still faced obstacles. In contrast, regions like England introduced legal reforms that improved tenant security and incentivized land improvements, contributing to greater prosperity. This chapter explores the challenges faced by agriculture in post-Roman Europe and how legal and social structures shaped its evolution. 00:00 - The Decline of Agriculture in Post-Roman Europe 00:13 - Post-Roman Chaos 00:52 - Land Ownership and Laws 02:18 - Land Management and Improvement 02:57 - Tenant Systems and Labor 03:51 - Abolition of Servitude and Rise of Metayer System 04:49 - Legal Reforms and Tenant Security 05:38 - Tenant Rights in Scotland and Europe 06:34 - Service Obligations and Public Duties 07:10 - Taxation and Its Effects 07:39 - Social Status of Farmers 08:13 - Ancient Policies and Trade Restrictions 08:53 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku This video explores the natural progression of wealth in societies, beginning with agriculture as the foundation of economic growth. The countryside produces food and raw materials, while towns provide manufactured goods, creating a mutually beneficial relationship. We discuss how agriculture sustains both rural populations and urban centers, enabling towns to grow as surplus production increases. Over time, manufacturing and trade develop, following the agricultural base. Historical examples, like the American colonies and ancient civilizations such as Egypt and China, illustrate this natural order of economic development. However, modern Europe often reversed this sequence, with foreign trade driving manufacturing and eventually improving agriculture. Learn about the interplay between town and countryside, the evolution of industries, and how the natural progression of wealth fosters sustainable economic growth. This video provides a concise understanding of how societies grow and thrive through balanced cooperation and strategic investment in their economies. 00:00 - Introduction to the Natural Progress of Wealth 00:12 - Town and Countryside Exchange 00:50 - Agriculture as the Foundation 01:16 - The Role of Tradespeople 01:43 - Land and Manufacturing 02:07 - Foreign Trade 02:41 - Historical Progression of Economies 03:10 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku In this video, we explore the different ways capital can be used to support a country’s economy, highlighting four primary uses: gathering raw materials, processing those materials, transporting goods, and dividing products for consumers. We discuss how each type of capital—agricultural, manufacturing, wholesale, and retail—adds value to the national economy, with agricultural capital being the most productive. Learn how various trade types, such as home trade, foreign trade, and carrying trade, impact local labor and wealth differently. Discover why capital invested in home trade boosts local economies more effectively than foreign consumption trade or carrying trade, which often benefit foreign labor instead. We also examine how the flow of capital into different sectors, from agriculture to global trade, is driven by private profit and natural market forces. This video sheds light on how strategic capital allocation can fuel economic growth and national prosperity, with an emphasis on supporting local industries. 00:00 - Introduction to Different Uses of Capital 00:25 - The Four Uses of Capital 00:45 - Examples of Capital Use 01:02 - Importance of Each Capital Use 01:48 - Criticism and Defense of Retailers 02:07 - Productive Labor and Value Creation 02:27 - Comparison of Capital Uses 03:14 - Agriculture as the Most Productive Capital 03:41 - Local vs. Traveling Capital 04:04 -Capital Allocation and Economic Growth 04:27 - Historical Examples of Capital Use 05:28 - Types of Wholesale Trade 05:51 - Home Trade vs. Foreign Trade 07:16 - Carrying Trade and Its Impact 08:03 - Trade and Local Labor 08:34 - Necessity of Foreign Trade 09:15 - Surplus Capital and Carrying Trade 09:43 - Limits and Absorption of Capital 10:00 - Private Profit and Capital Investment 10:33 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku 
This video explores the concept of stock lent at interest, detailing how lending capital can either support productive work or lead to wasteful consumption. When money is borrowed for investment, it supports industries and generates profit, allowing the borrower to repay both principal and interest. However, when borrowed for consumption, repayment becomes a struggle, often requiring funds from other sources. We also dive into the effects of increased capital on interest rates, explaining how greater capital availability drives down rates due to competition among lenders. The video clarifies misconceptions about the discovery of gold affecting interest rates and highlights the connection between land prices and interest rates. Discover how economic dynamics, such as market regulation and money circulation, influence lending, borrowing, and investment in both practical and theoretical terms. This is a must-watch for anyone interested in understanding the complex relationship between money, interest, and national wealth. 00:00 - Introduction to Interest on Stock 00:11 - Lending Stock as Capital 00:23 - Productive vs. Non-Productive Use of Loans 00:53 - Borrowers and Lenders 01:16 - Country Gentlemen and Mortgages 01:34 - Money as a Tool for Lending 02:24 - Circulation of Money in Loans 03:05 - Interest Rates and Capital 03:33 - Debunking Theories on Interest Rates 04:09 - Impact of Silver on Value and Wages 06:04 - Regulation of Interest Rates 07:16 - Interest Rates and Land Prices 07:56 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku 
Explore the critical distinction between productive and unproductive labour and its impact on economic growth. This video delves into how productive labour, such as manufacturing, creates lasting value, while unproductive labour, like household service or government roles, often depletes resources. Learn about the balance between capital and revenue in shaping a nation's prosperity and how frugality can drive progress. We examine the historical effects of wasteful spending versus investment in durable goods, offering insights into sustaining long-term economic development. Discover the importance of saving, the role of private and public spending, and how individual industriousness often offsets government inefficiencies. Whether you’re curious about economic theory or looking for practical examples of wealth creation, this video breaks down complex concepts into accessible lessons that highlight the key drivers of national prosperity. 00:00 - Introduction to Productive and Unproductive Labour 00:13 - Explanation of productive and unproductive labour 01:10 - Funding productive and unproductive labour 01:49 - Differences between rich and poor countries 02:27 - How employment shapes society 03:12 - The relationship between capital, revenue, and industry 03:52 - Effects of frugality and waste 05:18 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku In this video, we explore the essential role money plays in society's wealth and the economy, focusing on how paper money and banking systems have influenced economic growth. Starting with an understanding of the components of a good’s price—wages, profits, and rent—this chapter explains how these factors contribute to the overall wealth of a country. We examine the shift from gold and silver to paper money, and how this transition has made commerce more efficient while still enabling the circulation of wealth. We delve into the mechanics of paper money, its circulation, and how the use of promissory notes allowed banks to increase credit, ultimately stimulating industry and trade. However, the video also highlights the potential risks of over-issuing paper money and the inflationary effects it can have, especially when money is not backed by tangible assets. In particular, we take a closer look at the Scottish banking system, its innovation with paper money, and how it contributed to Scotland's economic expansion. Yet, excessive credit and reckless lending practices eventually led to financial instability. We also discuss the lessons learned from these practices, which continue to inform modern economic policies. By understanding these early banking systems and the dynamics of money circulation, we gain insight into how they shaped today’s financial landscape and the importance of maintaining balance in a country’s monetary system. 00:00 - Introduction to Money as Part of Society's Wealth 00:11 - Components of Goods' Prices 00:41 - Gross and Net Revenue 01:03 - Fixed and Circulating Capital 01:29 - Role of Money in Society 02:38 - Paper Money and Banking 04:42 - Impact of Paper Money on Wealth 05:23 - Paper Money in Schotland 05:47 - Banking Practices and Risks 10:55 - Over-Extension of Paper Money and Economic Impact 15:59 - Historical Banking Examples 16:39 - Bank of England 18:03 - Role of Banking in Industry 18:48 - Risks of Over-Reliance on Paper Money 19:17 - Circulation of Money 21:31 - Regulations and Stability 21:55 - Paper Money and Commodity Prices 22:40 - Historical Issues with Paper Currency 24:42 - Modern Banking Practices 25:16 - Conclusion

Are you interested to read the original book? Get ‘The Wealth of Nations’ by Adam Smith now: https://amzn.to/3W5xeku In this video, we dive into the first chapter of The Division of Stock, exploring how people manage and invest their resources differently depending on the size of their stock. For individuals with limited stock, income is tied only to their labor. But once someone accumulates enough stock for long-term survival, they divide it into two categories: capital and stock for immediate consumption. Capital can be further split into circulating and fixed capital. Circulating capital is used for buying and selling goods to generate profit, while fixed capital includes investments like machinery and land improvements that generate long-term revenue. We explore how industries like farming, manufacturing, and trade rely on different balances of these capital types, and how they contribute to national wealth. Understanding these divisions is key to grasping how economies grow and how individuals and nations create sustainable wealth. 00:00 - Introduction to the Division of Stock 00:11 - Short-term vs Long-term Stock 00:58 - Types of Capital 01:32 - Industry-specific Capital Needs 02:01 - Farmers and Capital 02:24 - General Stock of a Country 02:47 - Fixed and Circulating Capital 03:16 - Supporting Immediate Consumption 03:52 - Continuous Supply of Circulating Capital 04:21 - Investment in Stable vs Unstable Regions 04:42 - Conclusion