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Remarkably, a friend of James Watt at the University of Glasgow best understood how this phenomenon of labor savings would unfold. Making a wide set of observations and predictions about specialized industrial processes—in which each laborer focused on a particular task rather than creating the whole as craftsmen and artisans did—Adam Smith advanced the idea of “division of labor” as a central concept in his 1776 Wealth of Nations, the treatise that defined the contours of market capitalism. As people specialized and the work needed for a given task decreased, the overall need for human labor would not fall as was feared. Instead, standards of living would increase as more people could afford more, widening the market for all sorts of new goods, which would create new forms of work. To Smith, this endless discovery of efficiency gains was the catalyst for all economic growth. The ability for humanity to collectively rise above a day’s work for a day’s sustenance, by definition, required the economy to get more out of mankind’s collective labor. At the same time, Smith argued that these newly discovered efficiencies that caused men to lose their livelihoods would seem cruel, but were inevitable as new ways replaced old. The interdependencies caused by industrialization, where one man’s effort was tied to that of another and then another, were an abstraction. As people left the self-sufficient village farm, where shelter, food, and clothing were simple domestic responsibilities, the idea of losing one’s place in the specialized economy was a danger that few had been exposed to.
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