The Current State of Economy in The Division of Labor Essay

The Current State of Economy in The Division of Labor - Essay Example There are three circumstances involved in this belief: increase the dexterity of every worker, time-saving mechanism, and utilization of machines that increase efficiency. Hence, a worker must have enough skill to perform his job and familiarize himself in operating a machine to produce maximum output. Smith cited the case of a pin maker who would likely produce only one pin a day without the two factors mentioned. However, if the concept of division of labor is applied, laborers could specialize in one task alone, which can result in greater productivity. Smith himself has witnessed workers who were inadequately skilled at making pins yet because of the specialized tasks assigned to them, ten workers can produce 48,000 pins in a day. In the end, Smith popularized this principle, which shows that lack of skill nor machines is not really obstacles to productivity. Ever since this has changed the landscape of manufacturing industries as early as the Industrial Revolution. This work by Adam Smith did have a lot of practical value because capitalists made a profit by applying the principle in their businesses.