Adam Smith and the Wealth of Nations

Of The Division of Labor:

The division of labor is a rational action that leads to greater efficiency. The separation of labor exists due to the economic advantage and leads to the greatest prosperity. Farming irrational if pursued only seasonally. Market allows specialization. Increase in production is due to the increased dexterity of the workman, lowering transaction costs, and increasing machines. The division of labor decreases the operation of one man's activity to one thing, giving him greater ease in performing it. Market forces driving change in work, technology, conceptions of time. Holds people to a high standard. The invention driven by the division of labor, not contextually or accidently as narrative might say. People maximize utility. He assumes mankind will progress to even greater rationality and efficiency.

Examine the house but only interested in the source of these materials, does not ask why X got it, probably because that matters not, X wants what X wants for reasons unknown to us, but the division of labor allows him to attain it and he is ratioanl in how he uses his money. Measures the class of peasant against King of Africa in terms of economic status.

Of the Principle which gives Occasion to the Division of Labor:

Division of labor not the impact of human wisdom, but the product of a "slow and gradual" consequence of a certain human propensity to exchange. We do not know why or how, limits our understanding of it. Common to all men. Civilized men do not fawn, but see into the future and know that to get what they want, they will have to offer something in return. Men want to gain more through trade.

The difference of natural talents in different men is, in reality, much less than we are aware of; and the very different genius which appears to distinguish men of different professions, when grown up, is the effect of the division of labor. Incentives from external forces drive human choice and behavior. He groups men into one species and animals into another to make his points.

That the Division of Labour is Limited by the Extent of the Market:

The extent of the market divides labor. In a small market, no one can devote himself entirely to one trade. Industry goes along rivers. Commerce drives all improvement. Egyptian society motivated by the same force as English. Does not understand why Egypt, India, or China pursued foreign commerce, though they did.

Of the Wages of Labor:

In the state of nature, what you made was what you got. Man at his most basic will exchange things and make stuff cheaper. Bound to end before production improvements. Wage disputes caused by desire for more money, the capitalist tend to win. Groups form due to economic incentives. Labor tactics influenced by constraints of time and money, not anything else. Family size an economic reality. No mention whatsoever of anything else.

Collective action only possible when groups make it so. Marriage etc. explained in economic terms.

Digression on Silver:

What ancient societies value and why speculate on stuff. Low value of other things makes silver appear more valuable. Dietary habits comapred to corn.

Rent of Land:

Every improvement causes rent to rise, the wealth of the landlord, his power of purchasing labor or their produce. The landlord's share raises produce. Rise in productive power of labor reduce prices. The interest of the landed class those of general society as they want whats best, in theory. Labor also want whats best, but havent the time to think it through. Public interest cannot be expected from merchants: class, but interest dominates their political lives.