Economics is Fun Series – Part 3 – Specialisation
More great stuff from the Adam Smith Institute. This week Madsen Pirie looks at specialisation and mass production, picking up on both the Wealth of Nations and the genius of Eli Whitney in the process.
Here’s Adam Smith himself on the benefits of specialisation:
This great increase in the quantity of work, which, in consequence of the division of labour, the same number of people are capable of performing, is owing to three different circumstances; first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and, lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many.
Adam Smith, The Wealth of Nations
Want more? Watch the previous episode on price.