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Division Of Labor In The Wealth Of Nations By Adam Smith

Decent Essays
The Wealth of Nations written by Adam Smith, father of the economics, stated that the division of labor, different tasks assigned to each individual in order to improve proficiency, has resulted in the greatest improvement in the industry. Although division of labor can be seen in most industries, the system are more noticeable and often work better in larger corporations. For example, “One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head… (pg.11). In this excerpt, each individual might be able to make one pin by themselves, however, if ten individual divide up the labor, they can produce up to thousand pins per day. Another excerpt, “In every improved society, the farmer is generally a farer; the manufacturer, nothing but a manufacturer...” (pg.12), however, display a disadvantage view on division of labor. While the division of labor are good for industries like the pin industry, the farmers whose tasks of plowing the field and reaping the harvest can not be divided because they are seasonal in nature. Also, the agricultural labor can not be more productive with the division of labor. For example, corn in the undeveloped countries is similar in price as the ones in the developed countries, although manufactured goods are much cheaper in the latter. In addition, there are three main factors contributing to the success of the division of labor. One, each individual spend considerable amount
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