Smith’s Founding Myth of Economics

“What, he begins, is the basis of economic life, properly speaking?”
-“certain propensity in human nature… the propensity to truck, barter, and exchange one thing for another. Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog.” But humans always swap and compare things. Even logic and conversation are forms of trading, and “humans will always try to seek their own best advantage, to seek the greatest profit they can from the exchange.”
-Drive to exchange creates division of labor and thus civilization
-People naturally specialize into what they’re better at, and then they end up with surpluses. But if the other people in their societies don’t have the right surpluses to trade, everyone’s fucked. “So everyone will inevitably start stockpiling something they figure that everyone else is likely to want.” Which then makes that commodity even more valuable. Yadda yadda yadda, precious metals, yadda yadda yadda, currency.
-This creates the notion of “the economy” as a separate sphere of human life. It’s where trading takes place

pg 25-8