The Wealth of Nations: Book 1, Chapter 1
December 29, 2009

This chapter is about the division of labor, which Smith believes is the main reason some nations are wealthier than others. Smith says the reason some nations are wealthier and more developed than others is because of the division of labor. He writes about a factory that produces thousands of pins per day, each worked on by ten different people; this illustration is somewhat famous.

He explains three reasons why the division of labor makes workers more productive.  The first two make sense:

Advertisements