Division of Labor

Posted by PITHOCRATES - November 4th, 2013

Economics 101

(Originally published October 24th, 2011)

The Division of Labor gives us our Houses, Food, Cars, Televisions, Smartphones, Laptops and the Internet

We can’t do everything ourselves.  It’s not efficient.  And most times not even possible.  We don’t build our own houses.  Grow our own food.  Build our own cars.  Manufacture our own high-definition televisions.  Smartphones.  Laptops.  And we don’t build our own Internet.  No.  Instead, people everywhere across the economy specialize in one thing (i.e., work for a living).  And together these specialists fit into the big economic picture.  Which gives us our houses, food, cars, televisions, smartphones, laptops and the Internet.

It started with the most basic division of labor.  Prehistoric women raised their young.  While prehistoric man hunted.  Which was necessary for the propagation of the species.  And us.  For if they all hunted and no one nursed the young the young would have died.  And with them the species of man.  For there was no formula back then.

The next great leap forward on the civilization timeline was the indispensible plough.  The prime mover of civilization.  With the food problem managed, famines were more the exception than the rule.  And with fewer people needed to produce a food surplus, people could do other things.  And they did.

The Division of Labor let us Create Surpluses in Food, Ploughs, Shoes, Tools, Harnesses, Etc.

The division of labor gave rise to artisans.  The first skilled trades.  Made possible by a food surplus.  As other people grew the food the artisans made the tools and crafts the farmers used.  They specialized in plough making and designed and built better and better ploughs.  Lots of them.  Shoemakers made shoes.  Lots of them.  Metal workers made tools.  Lots of them.  Leatherworkers made harnesses.  Lots of them.  See the pattern?

The food surplus gave us surpluses in ploughs, shoes, tools, harnesses, etc.  The division of labor let us create these surpluses.  Specialists made continual improvements in their areas of specialization.  Producing better things.  And more of them.  Which led to another key to the advanced civilization.  Trade.

The shoemaker didn’t have to grow food.  He could trade shoes for food.  Ditto for the plough maker.  The metal worker.  The leatherworker.  And the farmers didn’t have to make any of these things because they could trade food for them.  So we became traders.  We created the market.  And traders took their goods and/or services to these markets to trade for other goods and/or services.  First by foot.  Then by animal.  Then by boat.  Then by train.  Then by truck.  Then by airplane.  Artisans (i.e., workers) traded their specialization for the product and/or services of another’s specialization.  Then.  And now.

The Division of Labor made the Complex Simple and our Lives Rather Comfortable and Fun

The division of labor gave rise to the artisan.  The skilled trade worker.  The middle class.  People who can specialize in one thing.  And trade that one thing for the other things he or she wants.  Whether it be a skilled blacksmith hammering out farming tools.  A tool and die maker working in a factory.  An accountant.  Or a software engineer.  We have a skill.  Our human capital.  And we trade that skill to get the other things we’re not skilled in.  The end result is a modern, bustling, free market economy.  An advanced civilization.  And a high standard of living.

All thanks to the division of labor.  Which made the complex simple.  And our lives rather comfortable.  And fun.  Unlike prehistoric man.  Who knew of no such things as iPhones.  Indoor flush toilets.  Movie theaters.  Or restaurants.  No, he didn’t do much other than survive.  Which was no easy thing.  But he did.  And for that we are grateful.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , ,

Division of Labor

Posted by PITHOCRATES - October 24th, 2011

Economics 101

The Division of Labor gives us our Houses, Food, Cars, Televisions, Smartphones, Laptops and the Internet

We can’t do everything ourselves.  It’s not efficient.  And most times not even possible.  We don’t build our own houses.  Grow our own food.  Build our own cars.  Manufacture our own high-definition televisions.  Smartphones.  Laptops.  And we don’t build our own Internet.  No.  Instead, people everywhere across the economy specialize in one thing (i.e., work for a living).  And together these specialists fit into the big economic picture.  Which gives us our houses, food, cars, televisions, smartphones, laptops and the Internet.

It started with the most basic division of labor.  Prehistoric women raised their young.  While prehistoric man hunted.  Which was necessary for the propagation of the species.  And us.  For if they all hunted and no one nursed the young the young would have died.  And with them the species of man.  For there was no formula back then.

The next great leap forward on the civilization timeline was the indispensible plough.  The prime mover of civilization.  With the food problem managed, famines were more the exception than the rule.  And with fewer people needed to produce a food surplus, people could do other things.  And they did.

The Division of Labor let us Create Surpluses in Food, Ploughs, Shoes, Tools, Harnesses, Etc.

The division of labor gave rise to artisans.  The first skilled trades.  Made possible by a food surplus.  As other people grew the food the artisans made the tools and crafts the farmers used.  They specialized in plough making and designed and built better and better ploughs.  Lots of them.  Shoemakers made shoes.  Lots of them.  Metal workers made tools.  Lots of them.  Leatherworkers made harnesses.  Lots of them.  See the pattern?

The food surplus gave us surpluses in ploughs, shoes, tools, harnesses, etc.  The division of labor let us create these surpluses.  Specialists made continual improvements in their areas of specialization.  Producing better things.  And more of them.  Which led to another key to the advanced civilization.  Trade.

The shoemaker didn’t have to grow food.  He could trade shoes for food.  Ditto for the plough maker.  The metal worker.  The leatherworker.  And the farmers didn’t have to make any of these things because they could trade food for them.  So we became traders.  We created the market.  And traders took their goods and/or services to these markets to trade for other goods and/or services.  First by foot.  Then by animal.  Then by boat.  Then by train.  Then by truck.  Then by airplane.  Artisans (i.e., workers) traded their specialization for the product and/or services of another’s specialization.  Then.  And now.

The Division of Labor made the Complex Simple and our Lives Rather Comfortable and Fun

The division of labor gave rise to the artisan.  The skilled trade worker.  The middle class.  People who can specialize in one thing.  And trade that one thing for the other things he or she wants.  Whether it be a skilled blacksmith hammering out farming tools.  A tool and die maker working in a factory.  An accountant.  Or a software engineer.  We have a skill.  Our human capital.  And we trade that skill to get the other things we’re not skilled in.  The end result is a modern, bustling, free market economy.  An advanced civilization.  And a high standard of living.

All thanks to the division of labor.  Which made the complex simple.  And our lives rather comfortable.  And fun.  Unlike prehistoric man.  Who knew of no such things as iPhones.  Indoor flush toilets.  Movie theaters.  Or restaurants.  No, he didn’t do much other than survive.  Which was no easy thing.  But he did.  And for that we are grateful.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , ,

The iPhone is Impressive but the Plough is a True Technological Wonder

Posted by PITHOCRATES - October 19th, 2011

Technology 101

The Plough allowed us to Grow more Food in Virtually any Soil giving us more Free Time to Think

The iPhone is an amazing piece of technology.  Whenever a new one comes out lines form with anxious people clamoring to get the new phone.  Steve Jobs was a brilliant entrepreneur.  He knew how to give the people what they wanted.  But he had some help along the way.

What made the iPhone possible?  Was it touch-screen LCD technology?  A little.  Was it the miniaturization of integrated circuits?  Well, that helped no doubt.  How about the transistor?  This was big.  It opened the door to the integrated circuits.  But it took something before that.  Vacuum tubes?  What the transistor replaced?  No.  Was it wireless radio transmission?  Antenna technology?  The development of electromagnetic field and wave theory?  No.  You have to go further back.  Even before the genius of Nikola Tesla (electrical engineer, inventor and father of AC power).  The telephone?  The telegraph?  The printing press?  No.  All necessary steps on the road to the iPhone.  But none of these are the prime mover that set things in motion to make the iPhone possible.  To find this prime mover you have to go way back.  To the dawn of civilization.  To the one piece of technology that changed everything.  The plough.

The first civilizations sprung up on the fertile banks of the great rivers.  The Hwang-Ho.  The Indus.  The Nile.  The Tigris.  And the Euphrates.  Where the flooding of these rivers made the soil nutrient-rich.  And easy to work.  The masses could scratch it with a stick.  Sow their seeds.  And pray to their gods for a bountiful harvest.  The plough changed that.  It let us grow food in virtually any soil.  And the work of a few could do the same of the masses in those river valleys.  This produced two things.  A food surplus.  And spare time.  Everyone in a society no longer had to farm.  They could do other things.  And think.

The Plough gave rise to Artisans, the Free Market Economy and a Middle Class

It all started here.  The plough unleashed the human mind.  It transformed us from working machines at the mercy of our environment.  To masters of our environment.  Where we transformed our environment to better serve us.

This gave rise to artisans.  Blacksmiths.  Tanners.  Cobblers.  Inventors.  Entrepreneurs.  What we call the rise of a middle class.  These people didn’t have to grow food.  Because they could trade for food.  With the things they created.  And like the farmers, they created surpluses.

We traded this surplus of food and artisan goods in markets.  The free market economy was born.  These markets became cities.  As the economy grew capital formation grew.  Banking and finance.  The joint-stock company.  The corporation.  Capitalism.  Which eventually gave us Steve Jobs.  And the iPhone.

The Plough put us in Control of our Environment, Reduced Famine and Improved the Quality of Life

None of this would have happened without the plough.  Because before the plough everyone grew food.  And lived at the mercy of their environment.  Where famine would devastate civilizations because of a bad growing season.  But the plough gave us food surpluses.  That let us live through a bad growing season.  And allowed a middle class to continue to grow.  Improving the quality of life for the first time in history.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , ,