Smith Text 2

Study Notes

Division of labour greatly improves the productive powers of labor.
The effect is most noticeable in simple, small-scale manufactures (e.g., pinmaking).
In large-scale manufactures, the division of labor is also substantial, though less visible because it involves more workers.
The division of labor allows individuals to specialize in specific tasks, increasing their dexterity and efficiency.
Specialization also reduces time lost switching between tasks, contributing to greater productivity.
The division of labor facilitates the invention and use of machinery. Workers with specialized tasks are more likely to develop and improve tools and techniques.
The division of labor leads to greater overall production and societal wealth. It benefits all members of society, not just the wealthy.

Agricultural output is generally less improved through division of labor compared to manufacturing output.
Although agricultural lands are often well-cultivated in rich countries, the increase in yield doesn't always proportionally match the increase in labor and expense compared to manufacturing.
Rich countries tend to excel in both agriculture and manufacturing, but often show greater comparative advantage in manufacturing.
Food prices in poorer countries can be competitive with richer countries despite less advanced cultivation methods. This is not the case in manufactured goods.

Specialization in particular jobs, like those in manufacturing, improve dexterity and allow quicker task completion.
This increase in efficiency occurs because concentrating on a single task allows for greater skill development and familiarity with tools and the production process.
Switching between tasks can lead to significant time losses. This effect is lessened when tasks are performed in the same location.
Machinery invented to aid with labor often developed as the result of workers needing tools and techniques for more efficient task completion, as opposed to being the product of innovation by philosophers.
The use of machinery is a major factor in increasing productivity, particularly for tasks where they improve upon human limitations, or automate repetitive motions and speed up the whole process of production.

The sheer volume of work and individuals involved in the everyday necessities of a citizen creates a sense of common wealth, and widespread prosperity.
The division of labor creates a large network of interdependence within society, with each person relying on others to provide goods and services.
This widespread network of production makes universal wealth possible, particularly in sophisticated societies.
The concept of an industrious peasant having a better standard of living than a king in undeveloped societies is raised as a point of comparison; showcasing how the efficiency of work and specialization, as a whole, lead to a more desirable standard of living.