Smith: Of the Natural Progress of Opulence

Smith's views are accurate for a time in which people and interactions are much more localized or on a very broad historical basis. However, saying that farmers are first with manufacturing and foreign commerce following later is true only in a time period where people cannot easily access their nation and the globe. In American history we put in place the homestead act in an effort to increase population in areas where little existed but had perfectly good farmland. If his theory was correct people would have already settled this area and only when all farmland was taken would manufacturing begin. Also by the late 19th century railroads were sprawling across the eastern U.S. and a few stretched into the mid-west that were primarily made to transport manufactured goods.

Another part of his theory is based around the thought that people are low-risk low-reward creatures. Being that people are less likely nowadays to start a farm, which is relatively secure (with government involvement), and more likely to work for a company or start their own business. Both of these are not only more risky, as your business could fail or your job be taken, but also more rewarding (sometimes).

People nowadays would consider stocks, bonds, and CD's as comparable investments to land. A wealthy person makes much of their money in the stock market. They essentially produce nothing but still make a lot of money through speculation, buying low and selling high. Many of our wealthiest people are not producers but instead make their money off of the producers because they have the money required.