Five Factors that Affect Wages and Profits
Dec 21, 2016

Are you looking for a career that gives a high salary or deciding what kind of business to establish? Adam Smith enumerated five factors that affect wages and profits:

  1. The agreeableness or disagreeableness of the employments

Defense contractors get paid a lot

  1. The difficulty and cost of learning them

A solutions architect is a high paying job in IT

  1. The constancy or inconstancy of employment in them

Seasonal labor in farming

  1. The small or great trust which must be reposed in those who exercise them
    • Smith gives the example of doctors whom we should trust to cure us

  1. The probability or improbability of success in them.

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