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Word Count: 1,070
In the book Wealth of Nations Adam Smith believes the government should not control economic activity but should take more of a laissez-faire outlook He believes that the economy can run by itself without external interference The main concept that keeps the economy flowing is mans natural ability to exchange and trade This human instinct ultimately leads to a division of labor a work force Adam Smith describes the causes of increased productivity value and price wages and rent all of which determines the flow of the economy When asked how advancements in productivity occur most people would say through technology and machinery However Adam Smith believes advancements are due to increased specialization of labor People such as philosophers scientists and engineers are significant to this division of labor they create theories formulas and models which allow technology to develop and progress This in return allows the people as a community to evolve The foundation of this division of labor is mans tendency to trade Also it is motivated by the human instinct to self-love and self-help Contrary to popular believe it is not based upon wisdom This division of labour is not originally the effect of any human wisdom Smith believes that something most people ask themselves is will I benefit from this However he does not believe self-interest is a form of selfishness nor is it the pinnacle of the force behind human motivation If he believed that then all humans would be nothing more than parasitic savages only looking to help themselves In addition to self-motivation is cooperation and barter amongst others Smith brings up an example of this through the market system by the general disposition to truck barter and exchange being brought as it were into a common stock where everyman man purchase whatever part of the produce of other mens talents he has occasion for Essential what Smith is saying is that the market is a form of mutual
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