by Josh Owens

Created on: February 19, 2007   Last Updated: May 08, 2007

Adam Smiths principle on the division of labor was an excellent idea. He states that everyone should have there own task on each product. He used a pin-maker as an example one person to pour the metal, another to make the actual pin, one to sharpen it and so on. With this method the product would be precise because everyone handling the pin would be an expert at his or her part in making the pin. This leaves little room for error. Division of labor also means keeping the men and women separated so they don't flirt, and keep there minds on their work. In Smith's book Wealth of Nations he states that the government should intervene in economics as little as possible. This is true, but there are times, a depression for example, where the government must step in. Adam Smith's invisible hand is a good example. The hand should be there only if needed, and when it's not needed it should be invisible.

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