ack to the original "rude" system of primitiveman, a state which relied upon simple barter and exchanging goods.Looking at his own society’s economic system, Smith explores the division of labour, therole it has to play in industrialization, and its general impact upon the wealth of the state.Smith regards the division of labour and the resultant specialization as the key toincreasing the productivity of labour, rather than the increase in mechanization since theIndustrial Revolution began, as many would argue. Naturally, a highly specializedeconomic unit would be dependent upon interaction with other, similarly specializedunits, and Smith illustrates that a system of fair and accessible trade is necessary for anefficient use of labour.The much quoted example of the pin maker is used to demonstrate Smith’s point aboutthe division of labour. Despite its questionable accuracy, this example does much toillustrate the plight of labour under a system of increasing specialization. That is to say, itshows the boredom and melancholia which can be associated with repetitious andlaborious work. For Smith, however, any such problem is amply compensated for by therelative prosperity of a society based upon specialized markets and trades. For instance,he asserts that an English worker under that system of divided labour is richer than anAfrican king, though it would appear that he looks quantitatively at such wealth ratherthan taking a more relative, subjective approach.The second major economic or scientific theme of Smith’s study is that of the ‘invisiblehand’, or the unseen guiding force in operation in any given market. This guiding forcewas individual self interest. That is to say, the principle of the ‘invisible hand’ articulatedSmith’s notion that if an individual were to act according to their own interest then theywill in fact be acting in the best interests of society. Each member of society...
