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The Economy And The Work Of Adam Smith

Decent Essays
This week was focused on the economy and the work of Adam Smith in the Wealth of Nations. I view Smith as the primary founder of the American capitalist economic system we know today. I really like how Smith uses ample examples in order to illustrate the importance and benefits of the division of labor (such as the pin manufacturer example). When reading about Adam Smith’s thoughts of the division of labor, I automatically thought of the beginning of the assembly line and its use in the production of different consumer goods, such as automobiles. The division of labor and production of different parts by different people, especially in the Ford automobile factory, allowed for higher efficiency and output and therefore the growth of the industry. Before reading Chapter 1 of Wealth of Nations, I never understood why food products are relatively the same price in different nations in different stages of development, while manufactured goods cost less in developed countries. Now I understand that the division of labor cannot successfully occur in every profession (like farming, for example), and that is the reason why common food products are relatively the same price in all places that have an agriculture industry. I also like how Smith wrote in Chapter 10 that if every man could pick his occupation, there would be no advantageous job. Everyone would understand the wages that they would be paid in the occupation they choose. Additionally, Smith believed that the duties of
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