Thursday, May 10, 2018

Division of Labor and Invisible Hand

As has been previously discussed, Smith's innovative concept of Division of Labor is detached from principles that he advocates in other contexts.  It also entails a criticism of one of the cardinal features of his Economic model itself.  For, Division of Labor presupposes Organization of Labor, and, hence, deliberate social organization.  So, if Division of Labor conduces to national wealth, then deliberate social organization is a vital factor in achieving that goal.  Thus, Division of Labor entails a repudiation of the possibility that national wealth can be achieved via some mysterious force, i. e. via his Invisible Hand.  With greater emphasis on the organizational factor in his system, the subsequent history of Capitalism might have been very different, e. g. with less insistence on laissez-faire conditions.

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