A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
This division of labour effects an easy and natural combination of
economic efforts for the creation of the national dividend. Whereas
animals confine themselves to the direct satisfaction of their individual
needs,[133] men produce commodities to exchange them for others more
immediately desired. Hence there results for the community an enormous
increase of wealth; and division of labour, by establishing the
co-operation of all for the satisfaction of the desires of each, becomes
the true source of progress and of well-being.
In order to illustrate the growth in total production as the outcome of
division of labour, Smith gives an example of its effects in a particular
industry. “The effects of the division of labour, in the general business
of society, will be more easily understood by considering in what manner
it operates in some particular manufactures.” It is in this connection
that he introduces his celebrated description of the manufacture of
pins. “A workman not educated to this business (which the division of
labour has rendered a distinct trade), nor acquainted with the use of the
machinery employed in it (to the invention of which the same division
of labour has probably given occasion), could scarce, perhaps, with his
utmost industry, make one pin in a day, and certainly could not make
twenty. But in the way in which this business is now carried on, not
only the whole work is a peculiar trade, but it is divided into a number
of branches, of which the greater part are likewise peculiar trades.
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;
to make the head requires two or three distinct operations; to put it
on, is a peculiar business, to whiten the pins is another; it is even a
trade by itself to put them into the paper; and the important business
of making a pin is, in this manner, divided into about eighteen distinct
operations, which, in some manufactories, are all performed by distinct
hands, though in others the same man will sometimes perform two or three
of them. I have seen a small manufactory of this kind where ten men only
were employed, and where some of them consequently performed two or three
distinct operations. But though they were very poor, and therefore but
indifferently accommodated with the necessary machinery, they could, when
they exerted themselves, make among them about twelve pounds of pins in a
day.”[134]
Such is the picture of man as we find him in society. Division of labour
and exchange have resulted in augmenting production a hundredfold, and
thus increasing his well-being, whereas left to himself he could scarcely
supply his most urgent needs.
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