CPO 2001 Lecture Notes - Lecture 7: Invisible Hand, Path Dependence

• School: University of Florida
• Department: Comparative Politics
• Course: CPO 2001
• Professor: Elischer, Sebastian

Document Summary

The greatest improvement in the productive powers of labor is the division of labor. Why: subdivision of complex tasks leads to specialization in simple tasks, much more efficient in terms of personnel and time, leads to the industrialization of simple tasks. Division of labor is not natural. where does it come from: self-interest. Regulation of commerce: cannot increase quantity of industry beyond domestic capital, directs and diverts industry, for better or worse, there are individual and domestic natural advantages in the production of goods.