3 : Man Is An Animal That Makes Bargains: No Ot... Official

1. Introduction

An Inquiry Into The Nature and Causes of The Wealth of Nations (Vol. 1) 3 : Man Is an Animal That Makes Bargains: No Ot...

Adam Smith, often called the "father of modern economics," identifies the "propensity to truck, barter, and exchange" as a fundamental driver of human civilization. In Book I, Chapter II of An Inquiry into the Nature and Causes of the Wealth of Nations , Smith argues that while animals are self-interested and may cooperate, they lack the specific cognitive and social traits required for formal bargaining. In Book I, Chapter II of An Inquiry

Smith observes that when an animal wants something from another, it must gain favor through "fawning or servile attention"—essentially begging or using natural cries to signify its needs. Humans, however, cannot rely solely on the "benevolence of the butcher" or the "friendship of a few" to survive. Because life requires the cooperation of "great multitudes," humans developed a more efficient method of obtaining what they need: the bargain. Because life requires the cooperation of "great multitudes,"