The Wealth of Nations Book 1 Chapter 11 part 3e - Effect of Improvement on the Price of Manufactures

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How do improvements in manufacturing impact the real price of goods? This video dives into the effects of advancements in machinery, labor efficiency, and production techniques, showing how they generally make products cheaper over time. Using examples from the metal and textile industries, we highlight how innovation has dramatically reduced costs, such as a quality watch dropping from 20 pounds to just 1 pound. However, not all industries see these benefits equally—rising raw material prices, like timber or Spanish wool, can offset these gains in certain sectors.
We also take a historical look at textile production, comparing the cost of cloth and stockings from centuries ago to today. From spinning wheels to fulling mills, the evolution of machinery explains why goods once required significantly more labor, making them more expensive in real terms. Discover how these economic shifts shaped the affordability of everyday items.
00:00 - Introduction to the Effect of Improvement on the Prices of Manufactures
00:14 - General Effects of Improvement
00:40 - Exceptions in Certain Industries
00:56 - Metal Industry
01:25 - Clothing Industry
01:52 - Historical Price Comparisons
03:19 - Technological Advancements in Cloth Production
03:52 - Household vs. Industrial Production
04:25 - Conclusion