Today we're gonna talk about profits. They come from stock! #AdamSmith reminds us that stock is any resource paid for in advance when doing business. In general, profits and wages don't move together. (I.ix.1–2) #WealthOfTweets #SmithTweets

As stock goes up, there's more of it to employ more workers (by paying them or providing machines for them to work or both). This raises wages! But new stock competes with existing stock, which tends to lower profit. (I.ix.2) #WealthOfTweets #SmithTweets
If you thought figuring out the average wages of labor was complicated, don't even think about trying to figure out the average profit of stock. Basically impossible. Luckily, the rate of interest tends to vary with the profits of stock. (I.ix.3–4) #WealthOfTweets #SmithTweets
Lots of laws have tried to control interest rates and stop usury. They've all failed to do either. (I.ix.5–9) #WealthOfTweets #SmithTweets
Profits and wages rising together is unusual, but it happens. In particular, in new colonies. (I.ix.11) #WealthOfTweets #SmithTweets
Investing advice from Smith: It's easier to make money if you've got some. The trick is to get some. (I.ix.11) #ThanksWeGuess #WealthOfTweets #SmithTweets
Some things that keep wealth low: neglecting/despising foreign commerce (restricts the extent of the market) and neglecting the protection of the rights of the poor and small business owners (gives the rich monopoly powers). (I.ix.15) #WealthOfTweets #SmithTweets
For example, the "barbarous nations" that overran the western Roman empire (yes, he means the Germans) left the enforcement of contracts to the parties subject to them, contributing to the stagnant economy. (I.ix.16) #WealthOfTweets #SmithTweets https://t.co/OCf1TNHiV0
The ordinary rate of profit must compensate for the risk that the investment fails in the same way that the ordinary rate of interest has to compensate for the risk of default by borrowers. (I.ix.18–19) #WealthOfTweets #SmithTweets
Only the amount paid in excess of what compensates for risk is "neat or clear" profit. Gross profit is the whole shebang. (I.ix.18) #WealthOfTweets #SmithTweets
When a country gets so rich that it has employed the full quantity of stock that can be used, it will become fashionable to be in business as it is to dress according to the fashion of the times. (I.ix.20) #WealthOfTweets #SmithTweets
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That awkward feeling when you spell awkward aukward. (I.ix.20) #WealthOfTweets #SmithTweets #YesWeKnowItWasADifferentTime
Employers and merchants blame increasing prices on high wages, but Smith says high profits are much more to blame. Wages increase prices arithmetically, but increasing profits work like compound interest. (I.ix.24) #WealthOfTweets #SmithTweets
You'd never know it from listening to the merchants and masters, though—"They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people." (I.ix.24) #SurplusOfShade #WealthOfTweets #SmithTweets
Tune in tomorrow as we, the Smithtweeters, try to get some love from @MikeRoweWorks as #AdamSmith explores seasonal work, #DirtyJobs, and side gigs.

More from @AdamSmithWorks

OK. Chapter 7 of Book 4 of #WealthOfNations is tough going. It's long. It's serious. It's all about colonies.

We can take comfort, though, in knowing that the chapter #AdamSmith says is about colonies is, in fact, about colonies. (IV.vii) #WealthOfTweets #SmithTweets


Colonies were a vexed subject when #AdamSmith was writing, and they’re even more complicated now. So, before we even get to the tweeting, here’s a link to that thread on Smith and “savage nations.” (IV.vii) #WealthOfTweets


The reason for the ancient Greeks and Romans to settle colonies was straightforward: they didn’t have enough space for their growing populations. Their colonies were treated as “emancipated children”—connected but independent. (IV.vii.a.2) #WealthOfTweets #SmithTweets

(Both these things are in contrast to the European colonies, as we'll see.) (IV.vii.a.2) #WealthOfTweets #SmithTweets

Ancient Greeks and Romans needed more space because the land was owned by an increasingly small number of citizens and farming and nearly all trades and arts were performed by slaves. It was hard for a poor freeman to improve his life. (IV.vii.a.3) #WealthOfTweets #SmithTweets

More from Trading

Fake chats claiming to be from the Irish African community are being disseminated by the far right in order to suggest that violence is imminent from #BLM supporters. This is straight out of the QAnon and Proud Boys playbook. Spread the word. Protest safely. #georgenkencho


There is co-ordination across the far right in Ireland now to stir both left and right in the hopes of creating a race war. Think critically! Fascists see the tragic killing of #georgenkencho, the grief of his community and pending investigation as a flashpoint for action.


Across Telegram, Twitter and Facebook disinformation is being peddled on the back of these tragic events. From false photographs to the tactics ofwhite supremacy, the far right is clumsily trying to drive hate against minority groups and figureheads.


Declan Ganley’s Burkean group and the incel wing of National Party (Gearóid Murphy, Mick O’Keeffe & Co.) as well as all the usuals are concerted in their efforts to demonstrate their white supremacist cred. The quiet parts are today being said out loud.


The best thing you can do is challenge disinformation and report posts where engagement isn’t appropriate. Many of these are blatantly racist posts designed to drive recruitment to NP and other Nationalist groups. By all means protest but stay safe.

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