SOSC 1520 Lecture Notes - Lecture 7: Capital Accumulation
30 Jan 2018
School
Department
Course
Professor
Document Summary
The division of labour was fundamentally the growing pathway of our economy. Capital accumulation progressed the development and the natural propensities of human nature upheld it. The author, adam smith discusses the significance of division of labour and accumulation of capital as the main parts in economic growth. Capital accumulation in an economy occurs from the annual production which is separated into either fixing capital (the biggest part) or paying the property-owner who rented out his land. The increase in production is derived from productive labourers and the tools that guide the process along. With this essay, i aim to discuss the two main parts of labour division that existed in our economy for centuries. Secondly, i will discuss the accumulation of capital and how the value of goods increases. Finally, i will discuss human nature and its natural thinking about wealth and the distribution of it. Division of labour consists of productive (manufacturer) labour and unproductive (menial servant) labour.
