Barter, Equilibrium, Competition

Smith's system is a generalization of its basic unit-Barter, i. e. a two-party, two-good exchange--that incorporates the complexities of party and good, in a context being rapidly transformed by unprecedented innovations in production, transportation, and money. So, one of his aims is to similarly generalize the features of the basic unit, one of which is mutual beneficiality, one condition of which is equilibrium of Supply and Demand. Accordingly, as is clear in the text of Wealth of Nation, the primary function of Competition in the system is in the service of achieving that Equilibrium, i. e. as a corrective to monopolistic imbalance favoring Supply. Thus, the more recent glorification of Competition as a process of selection, has no ground in the original concept of Capitalism.