The Wealth of Nations Chapter 1 Book 1 - The Power of Division of Labor

In this video, we explore one of the most important principles in economics: the division of labor. Adam Smith showed that productivity skyrockets when tasks are specialized. Take the example of pin-making—by dividing the process into 18 distinct tasks, workers can produce tens of thousands of pins daily, far more than if one person were doing everything.
This concept isn't limited to simple industries. In manufacturing, specialization leads to efficiency and innovation, while in agriculture, the impact is slower due to seasonal constraints. The division of labor also fosters trade, allowing workers to exchange surplus goods, which creates wealth for all.
The modern world is built on the collective efforts of many individuals, and even the simplest items—like a wool coat—are the result of countless specialized tasks.

Get the original book: https://amzn.to/3W5xeku
Learn about The Wealth of Nations on our website: https://easyeconomics.net/video-series-economics-books/the-wealth-of-nations/
Watch our video series about The Wealth of Nations by Adam Smith:
https://rumble.com/playlists/bDlhDvvVL8Q
Watch our video’s about other economics books: https://rumble.com/playlists/dJGTX0xbi6E
Watch the next video in this series:
https://rumble.com/v61h8oe-the-wealth-of-nations-chapter-2-book-1-the-principle-which-gives-occasion-t.html

00:00 - The Division of Labor
00:35 - Division of labor Example of Pin-Making
00:56 - Specialization and Efficiency
01:11 - Application of the Division of Labor Across Industries
01:34 - Three Main Reasons for Increased Productivity
01:56 - Machinery and Innovation
02:19 - Trade and Cooperation
02:38 - Complexity of Simple Items