In which of the following ways would Adam Smith have most likely thought about the concept of a living wage?
A) Smith warned managers to only pursue the pursuit of profits within the law, so he would likely have opposed a livable wage.
B) Smith warned managers not to negotiate wages below subsistence levels, so he would likely have supported some version of a living wage.
C) Smith supported regulation by the government of worker's welfare, so he would have supported a livable wage.
D) Smith felt that high bargaining power on the part of workers was damaging to competition, and so he would have opposed a livable wage.

Question

Quizplus · Accepted Answer

Adam Smith, in his writings, particularly in "The Wealth of Nations," argued against the idea of wages being pushed below subsistence levels. He believed that workers should earn enough to support themselves and their families, which aligns with the modern concept of a living wage. While he is often associated with the principle of the invisible hand and laissez-faire economics, he also recognized the importance of fair wages for the stability and prosperity of society.

In Which of the Following Ways Would Adam Smith Have