Minerals and national wealth

IT was in 1776, the year of the American Declaration of Independence, that celebrated economist Adam Smith’s magnum opus Wealth of Nations was published. While almost everyone in the economics fraternity — and a considerable number outside of it — is aware of the work, not many bother to delve into what he wrote or to contemplate what he said. (It is amusing to see folks, who have never read a word of the book, embarrass themselves by holding forth as if they were an authority on the subject.) A major aim of Wealth of Nations was to dispel and discredit an economic theory holding sway in Europe since at least the 16th century — mercantilism. One of the basic tenets underlying mercantilist thought was that the wealth of a nation lies in the number of minerals at its disposal, especially valuable ones like gold and silver. The more the stock of mineral wealth, the greater the power and standing of a nation.