How important is the division of labor to a capitalist economy?

The labor division plays a critical role in a capitalist economy by making the working process more efficient. The term division of labor, mentioned first by Adam Smith in his book “A Wealth of Nations” in 1776, applies to distributing tasks based on a specific part of the process. The different definition refers to the main point that the division of labor is a unique form of capitalist social production. Marx recognizes this process as “a way of creating surplus-value at the expense of the worker.” It is considered a sophisticated way to combine civilization’s progress and exploit workers. The idea of this process is based on increased efficiency and productivity of the production. The task is distributed among workers providing the opportunity to enhance proficiency.

The implementation of the division process in capitalistic structures could positively affect the entire system. According to Marx, the modern division of labor requires an increased number of employees under a capitalist. By expanding the number of workers, the division of labor facilitates increased production that develops capital. As mentioned by Marx, for the prosperity of capitalism minimum amount of wealth possessed by the capitalist must continuously enlarge. Moreover, the division of labor maximizes production and creates new economic sectors and workplaces. For example, the distribution of the tasks in large companies requires a more extensive team based on their occupation. Introduced economic goals and future perspectives help to organize the process of manufacturing properly.

Answer by Academic.tip's expert
An answer to this question is provided by one of our experts who specializes in business & economics. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2022) 'How important is the division of labor to a capitalist economy'. 3 November.

Reference

Academic.Tips. (2022, November 3). How important is the division of labor to a capitalist economy? https://academic.tips/question/how-important-is-the-division-of-labor-to-a-capitalist-economy/

References

Academic.Tips. 2022. "How important is the division of labor to a capitalist economy?" November 3, 2022. https://academic.tips/question/how-important-is-the-division-of-labor-to-a-capitalist-economy/.

1. Academic.Tips. "How important is the division of labor to a capitalist economy?" November 3, 2022. https://academic.tips/question/how-important-is-the-division-of-labor-to-a-capitalist-economy/.


Bibliography


Academic.Tips. "How important is the division of labor to a capitalist economy?" November 3, 2022. https://academic.tips/question/how-important-is-the-division-of-labor-to-a-capitalist-economy/.

Work Cited

"How important is the division of labor to a capitalist economy?" Academic.Tips, 3 Nov. 2022, academic.tips/question/how-important-is-the-division-of-labor-to-a-capitalist-economy/.

Copy