Adam Smith made the division of labor theory popular and argued that practice and specialization would automatically make people better at certain tasks, and when people improved their efficiency, who benefitted?
According to Adam Smith, the division of labor theory suggests that practice and specialization in specific tasks lead to increased efficiency and productivity. Smith argued that when individuals improve their skills through practice and focus on a particular task, they become more proficient at it, leading to higher output and quality.
In terms of who benefits from this increased efficiency, Smith believed that it would benefit both individuals and society as a whole. On an individual level, workers who specialize in a particular task can perform it more quickly and effectively, leading to increased productivity and higher wages. Additionally, as workers become more skilled in their specific tasks, they can innovate and find ways to improve efficiency further.
From a societal perspective, Smith argued that the division of labor helps to maximize overall production and improve the standard of living. When individuals specialize in specific tasks and trade their products or services with others, this exchange fosters economic growth and leads to a greater abundance of goods and services. Consequently, society as a whole benefits from the increased productivity and the resulting higher living standards.
In summary, according to Adam Smith, both individuals and society benefit from the division of labor and the resulting specialization and practice. Improved efficiency and productivity lead to higher wages for individuals and economic growth and improved living standards for society.