Discuss Smith 's Ideas On The Division Of Labour

Decent Essays
Explain and Evaluate Smith’s Ideas on the Division of Labour:
• A core part of dominant ideology is the split between state and market – is this valid? Is this true?
One of Adam Smith’s main focuses was the problem of the relationship between money and the state. Adam Smith can be seen as pioneering in questioning the role of the state, as he was seemingly the first to propose a systematic model of the economy that was independent of the state. He attempts to explain how society should organise economics from the perspective of what is naturally occurring. In doing this he finds that what should be and what can be are profoundly interlinked. This revolutionary thinking went against mercantilism, which was the dominant approach of the time period.
Mercantilism can be understood as an economic model that was characterized by government intervention. Mercantilism was an alliance between merchants and the state that was premised on increasing the power and wealth of the state through growing certain sections of the economy. It was formed by the concerns of the time, such as a need to maintain new and expensive militaries, the rise of the nation-state, and crises and shortages of money.
Adam Smith’s wrote The Wealth of Nations (1776) primarily as an attack on the economic mercantilist system of the day. Smith aimed to demolish the mercantilist beliefs that money was an end, and that the accumulation of wealth could be identified with the accumulation of money, and to understand
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