Summary Of The Wealth Of Nations By Adam Smith

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As the world kept advancing forward more than ever during the Industrial Revolution, more specialization was needed in specific tasks, the devotion of capital to increase the productivity of workers was also needed more than ever to make the division of labor possible. Adam Smith, also known as the father of the modern economic society and the one who proposed the invisible hand theory in the free market, was a philosopher and as well as the author of the book known as The Wealth of Nations, which had a complete impact on the present economic system we have today. Adam Smith’s motive behind the writing of The Wealth of Nations was to increase the welfare and the economic growth of the society. The book also tells us about the sudden transformation of the economic structure of England in the Industrial Revolution that dated back to the seventeenth century. Before the rise of the industrial revolution, manufacturing was usually done in people’s homes, using basic hand tools such as axes for chopping wood and shovels and pickaxes for tasks such as mining.
The growth of the economy of a society was the focal point of Adam Smith’s Wealth of Nations. And according to Smith, the growth of the economy heavily depended on the increasing of the division of labor, which for the most part relates to the specialization of the labor force by compartmentalizing work. The breaking down of large components of work into small tiny jobs resulted into the workers developing an expertise for
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