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The Peculiarities Of Division Of Labor

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Economics is based around how productivity is managed; supply and demand is based on the division of labor. Part of understanding what division of labor you have to have an understanding of how things operate. Economy is described as the production and consumption of goods and services are used to fulfill the needs of those living and operating within. From what has been said about the division of labor that if everyone focused on one particular job prices would rise and productivity would fall. Everything is done so that all services and goods are produced productively.

Division of Labor

The division of labor is described as the assignment of different parts of a manufacturing processor task to different people in order to improve efficiency. Having task divided in our economy cause for a more efficient and productive society. In our economy we have to outsource our products and jobs because in order to keep up with demand we have to keep up with supply. A man named Adam Smith wrote The Wealth of Nations in 1776 he wrote in his book about how to make a pin and when he counted all the task that go into making a pin, he saw a need on dividing the labor up. Another man in the 1800’s was named David Ricardo who developed a theory called Comparative advantage and he used that to describe trade. His theory included that outsourcing and trading was beneficial for our economy to run. A good example of his theory is that France is great for their Champagne and Hawaii has the Dole plant for pineapples. David Ricardo had the philosophy that when we divide and outsource our products then our economy can run efficiently.

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There are good and bad things about division of labor. When things can be divided more products can be produced in a day. For example, if you were to work at a motor vehicle plant everyone has one specific job that they do so they can master that job. Another good thing about dividing labor more products can be produced within a day, because workers don’t have to focus on all the duties of building a whole product on their own. While there are good things with this there are also bad things to go along with it. Some bad things about division of labor are people get bored with their particular job because they have no growth. Employees also become reliant on each other but if someone is behind on their particular job then everything and everyone else is behind.

Businesses are the perfect example because there’s an Accounting department, IT, human resources and the front-line employees. Businesses have multiple section because not everyone can do payroll affectly and that goes for human resources not everyone can hire people and make sure things are fair. Building a house is a great example of division of labor. In the beginning of planning to build a house to have one person that draws the plans and then you outsource to another company to build the main frame. Once the main frame has been built you have someone come in to put up the dry wall, install the roof, set up electrical and plumbing. Having all of these different jobs makes up for the productivity of homes and why neighborhoods and being builtquickly. Something that a personal experience for me with division of labor is that I used to work at the bakery department in HEB making cake and decorating cakes. When it came to dividing the jobs in the bakery one would take the orders, a few would just focus on the other the deserts for the show case and then a few other people would be in charge of the cake orders and decorating. From learning, trading and division of labor is the most essential to our economy because it allows us to continue to provide those services and goods needed to keep producing, but if we have only have one person doing the job of ten people and can create double the amount of supplies then we can continue to keep up with demand. Now that we know how the division of labor works, we can have a better understanding of how the economy is ran and have a better appreciation of getting our goods in a timely manner.


  1. OpenStax CNX. (2014). Cnx.Org.
  2. Why-Is-It-Important Munger. (n.d.). Division of Labor. Econlib.

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