What the father of the free market has to offer in today's world
If all the governments of the world had listened to Adam Smith's recommendations on moving to a free market economy, we would undoubtedly be a far more advanced society today. AB's Luke Cornish looks at P.J. O'Rourke's "On The Wealth of Nations" - a far easier read than the original 1776 text - and sees what it has to offer in today's world.
Title: On The Wealth of Nations
Author: P.J. O'Rourke
Publisher: Allen & Unwin
RRP: $24.95
A list of Adam Smith's friends reads like the who's who of the eighteenth century. With friends like Benjamin Franklin and John Hume, it's not surprising that the words Smith wrote in "The Wealth of Nations" created the foundation of capitalism.
One thing Smith was not, however, is brief. In his On The Wealth of Nations, American satirist P.J. O'Rourke takes a layman's perspective on the "book that shook the world". He expertly cuts through mountains of text to bring home to the reader the message Smith was trying to convey. He also manages to incorporate his famous wit and link Smith's economic insight to global current events all while condensing Smith's 900 pages to a more manageable 195.
However, do not be misled - this is not light reading. Half of the book is quoted directly from the original text and there were numerous times that a dictionary was required.
Smith was widely critical of the way land and property was handed down to male heirs in 18th Century and proposed that every person should be able to work towards owning their own home - the Australian dream. He was outraged "that the property of the present generation should be restrained and regulated according to the fancy of those who died perhaps five hundred years ago."
Most brokers will be relieved to hear the trend went the way of Australian Workplace Agreements and now people hold on to property for just a few years at a time, often needing a new mortgage each time they move.
The book is part the author's 'Books that Shook the World' series and the idea is a good one. It will look at books that you should read but that nobody except students and diehards actually have the time to read. Although, O'Rourke's alternative title for the series "Works Which Let's Admit You'll Never Read the Whole Of" is probably more appropriate.
This book is perfect for anyone who has been accused of being too focused on money or that has had to defend their wealth to people saying that they do not do enough for others in society. Smith lays out a convincing argument for why it is better for society as a whole that each person be responsible for pursuing their own means of wealth creation.
Rather than portraying businessmen as evil, selfish creatures, Smith thought the exact opposite was true. That it is the people willing to employ money in the bid to create more money who are the true benefactors of society.
Having read Smith's original work, I can heartily agree that this is a far more agreeable way to get to know and appreciate the master economist. His maxims on free trade, taxes, government regulation and protectionism being as true and relevant today as it was in 1776 when "The Wealth of Nations" was published.
