Study Guide

The Wealth of Nations Book I, Chapter 11

By Adam Smith

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Book I, Chapter 11

Of the Rent of Land

  • We can assume that when it comes to rent, landlords will always charge as much as their tenants are willing to play. Rent is also connected to the prices of products. For example, if the price of potatoes goes up, then so will the rent that people charge on land that's being used for potato farms.
  • Rent will also change with the value of what comes out of the property. For example, if someone suddenly discovered a ton of coal on a piece of land, the landlord would jack up the rent on that land because people would start making tons of money off of opening coal mines. The same goes for land that starts producing more food than usual.
  • Of all the people who make money in society, Smith thinks that landowners are the worst because they don't have to actually do anything to make their money. Bosses of companies help to produce products while workers create all kinds of new things. But landlords just sit back and do nothing for their money.

The Wealth of Nations Book I, Chapter 11 Study Group

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