Adam Smith Division Of Labour Essay

Adam Smith theorized about the birth of the division of labor. His observation and explanation made it much more possible to identify how societies naturally move towards capitalism and the implications it has on societies. Jean Jacques Rousseau also theorized at great length about the progression of mankind and the motivation that led to the creation of government. Rousseau and Smith shared similar beliefs about how societies were formed and how the division of labor came to be. However, they disagreed about the division of labor’s societal impacts, the creation and purpose of government, and its role in inequality. According to Smith, in a very early, undeveloped society, a person would be responsible to do the work of what now …show more content…
An agreement must be made between the stock holder and the laborer as to a fare wage for the labor that is provided, and the laborer almost always finds himself disadvantaged in any compromise (I.8.12). However, the masters are in a position of power because not only are more laborers lined up out the door looking for work, but because of their acquired stock, find themselves in a less desperate state of survival (8/28). Laborers are forced to come to the terms proposed by the masters, and should they resist in any fashion, they face unemployment, and the masters easily receive any necessary assistance through the aid of the government, should workers revolt (I.8.13). Smith theorized that as long as there is a demand for wage workers, there is an “increase of revenue and stock of every country,” which leads to an increase of national wealth (I.8.21). Luckily for the wage workers, this results in the demand for their employment (I.8.21). Consequently, when there is a demand for wage workers, there is no need for action to be taken by laborers to have their wages increased because masters are now in competition with one another for laborers