In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest.
― An Inquiry into the Nature and Causes of the Wealth of Nations
Smith went on to say…
Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.
Adam Smith (1723 – 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. –Wikipedia
Editor’s Note: This is an interesting perspective from one of the world’s leading economists ever. However, history will show that this is not always true. From time to time, commodity prices have actually decreased as wages rise, as in the chart below.
–Quora
