Meaning: The quote "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 wealth of the world was originally purchased" is attributed to Adam Smith, a prominent economist and philosopher of the 18th century. This quote encapsulates one of the fundamental principles of economic theory, which is the concept of labor as the source of wealth and value in an economy.

Adam Smith is often referred to as the father of modern economics, and his ideas have had a profound impact on the field. In his seminal work "The Wealth of Nations," Smith discusses the concept of the labor theory of value, which is the idea that the value of a good or service is derived from the amount of labor that goes into producing it. This principle forms the basis of Smith's argument that the wealth of a nation is not determined by the amount of gold or silver it possesses, but rather by the productive capacity of its labor force.

Smith's quote emphasizes the idea that labor is the ultimate source of all wealth. It suggests that the value of goods and services is ultimately derived from the human effort and skill that goes into producing them. This concept challenges the traditional view that wealth is primarily determined by the possession of precious metals or other tangible assets. Instead, Smith argues that it is the productive capacity of a society's labor force that drives economic growth and prosperity.

Furthermore, Smith's emphasis on labor as the original purchase of all wealth highlights the central role of human activity in the creation of value. This idea has important implications for understanding the nature of economic exchange and the distribution of wealth within a society. It suggests that the value of goods and services is not inherent in the objects themselves, but rather is created through the application of labor and human ingenuity.

Smith's quote also speaks to the broader social and moral implications of the labor theory of value. By emphasizing the importance of labor in the creation of wealth, Smith is making a statement about the dignity and worth of human work. This idea has resonated throughout history as a powerful argument for the fair treatment and just compensation of workers.

In summary, Adam Smith's quote "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 wealth of the world was originally purchased" encapsulates the central tenets of the labor theory of value and the foundational role of human labor in the creation of wealth. This quote serves as a powerful reminder of the enduring significance of Smith's ideas and their relevance to understanding the nature of economic value and the role of labor in society.