alittle store :: essays research papers

ex metalworker had many views that helped in making the world what it is today. I cant imagine what the world would be like if there werent thinkers like Adam Smith. Going to college would be pointless and trying to be something more than a cashier in a little store down the street would be pointless. What would we be working so hard for if we do the same amount of money as when we were sixteen working in that little store? He had many other views that were just as meaning(a) but this was a big interest to me as probably to many others.Smith believed that a lands wealth was not derived by how much they had in resources, or in exchangeable products, but rather by the labor that people put into making that product. "The annual labor of every nation is the fund which primitively supplies it with all the necessaries and conveniences which it annually consumes." Smith stated that a nation could increase the efficiency of the potential of its people by increasing skill and pr oportion. Smith noted that the best way to increase the efficiency of labor is the division of labor. The division of labor is the central factor in Smiths possible action of economic growth. Division of labor is the splitting of a large task into smaller tasks and then having one person is responsible for only one or two of the smaller tasks, which leads to an increase in productivity and stimulates the entire growth cycle, which increases the efficiency of the whole task. The division of labor and the accumulation of capital are what Adam Smith believed to be the driving forces of economic growth in any nation. He found that when the division of labor had broken down the production into a series of simple operations it was more natural for tools and machinery to be invented that replace hand labor and made everything go faster. Then it change magnitude worker productivity. This increased productivity and combined with the growing production so it increased output. This made more resources available to society to enjoy higher standards of support standard of living and products were not as scarce as they once were. Then Smith noticed that there was a huge rise in the wealth of the nation.Adam Smith stated that what a product is worth depends on the amount of labor that must be used to make that product.