# Different Effects of the Progress of Improvement Upon Three Different Sorts of Rude Produce explained — The Wealth of Nations

> Chapter companion for The Wealth of Nations by Adam Smith.

## What happens

Smith classifies rude produce into three types based on the ability of human industry to multiply their quantity. The first type, which cannot be multiplied at all, sees its price rise without bound as wealth and luxury increase. The second type, which can be multiplied in proportion to demand, has a natural price ceiling. The third type, where multiplication is limited or uncertain, may rise, fall, or stay the same depending on circumstances. He illustrates these principles with examples such as rare birds, cattle, wool, and hides, and discusses the effects of improvement on prices in different regions, including Scotland and the American colonies.

## Themes in this chapter

### Historical Development of Society

Smith examines how the progress of improvement affects the prices of different types of rude produce over time, linking economic changes to societal development.

### Wealth and Money

Discusses the real versus nominal price of commodities, the value of silver, and how wealth and luxury drive demand for rare goods.

### Free Trade and Market Competition

Highlights how the extent of the market influences prices of wool and hides, and how trade with distant countries affects local economies.

## Character check-ins

### David Hume

Cited for his observation on the value of fleece in Saxon times.

### Mr. Kalm

Swedish traveler whose account of North American husbandry in 1749 is referenced.

## Key lines

> If the complete improvement and cultivation of the country be, as it most certainly is, the greatest of all public advantages, this rise in the price of all those different sorts of rude produce, instead of being considered as a public calamity, ought to be regarded as the necessary forerunner and attendant of the greatest of all public advantages.

The increase in prices of raw goods is not a disaster but a natural and necessary part of national improvement and cultivation, which is the greatest public benefit.

_Smith argues that rising prices of rude produce are a sign of progress, not a problem._

> The quantity of wool or of raw hides, for example, which any country can afford, is necessarily limited by the number of great and small cattle that are kept in it.

The supply of wool and hides depends on the number of cattle, which is determined by the state of agriculture and improvement.

_Smith explains the link between livestock numbers and the availability of certain raw materials._

> In some provinces of Spain, I have been assured, the sheep is frequently killed merely for the sake of the fleece and the tallow. The carcase is often left to rot upon the ground, or to be devoured by beasts and birds of prey.

In parts of Spain, sheep are killed only for their wool and fat, with the meat wasted, showing the low value of meat relative to wool.

_Illustrates the disproportionate value of wool and tallow in less developed regions._

## Links

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