The Impact Of The Wealth Of Nations By Adam Smith

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Adam Smith is known as the father of economics. He was a Scottish philosopher and is best known for his works in An Inquiry into the Nature and Causes of the Wealth of Nations also known as ‘Wealth of Nations’, in this he talks about the division of labor and the invisible hand. These are his major contributions to economic science and will be discussed further in the essay.
The Wealth of Nations was considered as his most important work written as the science of rules for the production, accumulation, distribution and consumption of wealth. One of his observations was that production was improved by assigning specific tasks to individual workers and that this division of labor would increase production by allowing workers to specialize in specific parts of the production process. “The key to economic efficiency is specialization – the division of labour. Specialization has made the process thousands of times more productive.” (Eamonn Butler, 2011). “The greatest improvement in the productive power of labour, and the greater part of the skill, dexterity, and judgment with which it is anywhere directed, or applied, seems to have been the effects of the division of labour.” (Adam Smith, 1776). The division of labour is helpful as it saves time and increases a person’s skills and ability as they are repeated over and over which contributes to the efficiency. With the division of labour things are produced faster, more efficient and cheaper. An example of this is where Smith
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