Summary Of Chapter 2 Of The Wealth Of Nations By Adam Smith

In chapter 2 of “The Wealth of Nations”, Adam Smith first showed that human nature is all self-interested by the sentence “It is in vain for him to expect it from their benevolence only” written. Indeed, people will help or fulfil others’ tendencies only when they can see the return from others. Seekers are more likely to get what they are looking for only if they can interest providers’ self-love rather than just by begging. So, treaty, barter and purchase exist to let humans to get what they want though showing the providers their own advantages during the trade. People then no longer need to produce all they wanted themselves but by exchanging. This is the simple division of labour which people involve in different kinds of like works. Later, …show more content…
They have the habit of sauntering and indolent careless application. So, before division of labour, people need to produce all necessaries themselves and it is impossible for them to pass very quickly from one kind of work to another as various places and tools are involved. People need time to get used to dissimilar process of works and this will be time-consuming. With the division of Labour, people are only required to focus on one single part of operations. Time commonly lost in switching works is saved. Workmen can therefore produce more with a higher quality as each workman are only focus on each part of …show more content…
Division of labour simplifies processes of production which makes more and easier trades available. Therefore, it lets poorer people have a higher chance to get a job and pay. The quickened and shortened processes of production also lead to the quantity and even quality of outputs increase. Furthermore, a wider choice of goods with a lower price is available since more machines and time can be utilized to invent. It allows people to consume more and better. In general, people’s living standard improve. Rich and poor are only a relative