The price of commodities in labour

Adam Smith, in his book "The wealth of nations" wrote a chapter- OF THE REAL AND NOMINAL PRICE OF COMMODITIES, OR OF THEIR PRICE IN LABOUR, AND THEIR PRICE IN MONEY.

Adam Smith wrote, "Every man is rich or poor to the degree in which he can afford to enjoy the necessaries, conveniences, and amusements of life."

The real price of every thing, what every thing costs to the man who wants to acquire it, is the toil and trouble of acquiring it.

Labour was the first price, the original purchase money that was paid for all things. It was not by gold or by silver, but by labour, that all the wealth of the world was originally purchased.

The value of any commodity to the person who possesses it, and who wants to exchange it for other commodities is equal to the quantity of labour which it enables him to purchase.

Labour, therefore is the real measure of the exchangeable value of all commodities.

In "The wealth of nations' published in 1776, Adam Smith explains "Practical Theory of Value" and the labor theory of value.

We have come from the agricultural age through the industrial age during which time Smith wrote 'The wealth of nations' to the the present information age.

Labour was the most important factor in the early stages, capital became more prominent in the industrial age; knowledge is the key driver of progress in the information age. Knowledge belongs to the person who has it in him and it doesn't transfer to anyone else unless it is passed on.

The knowledge worker has taken precedence over labour, capital and land-the traditional factors of production and it looks like we have come a full circle to value the worker once again.

The dynamics of knowledge has complelled organisations to change, not only its structure but also in how business is conducted.

The relationship between the knowledge worker and his organisation is a relatively new phenomenon. The knowledge worker has become an empowered individual, he can work from home, he can telecommute, and submit his work online.

We are currently amidst a revolutionary change in how business is transacted and how societies adept to these changes in an interconnected global community.