Speaking of Smith
Adam Smith and the Knowledge Problem
Jon Murphy for AdamSmithWorks
...the division of labor means a division of knowledge.
...the division of labor means a division of knowledge.
If you ask anyone what Adam Smith is known for, the likely answer (other than the invisible hand) would be “division of labor.” He begins The Wealth of Nations with a bold statement of his thesis: “The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is any where directed or applied, seem to have been the effects of the division of labour” (13). He extends the lessons of the pin factory into his support for international trade.
But, some 770 pages later, Smith makes an essential qualification. The division of labor can lead to a narrowing of the mind. Smith writes:
In the progress of the division of labour, the employment of the far greater part of those who live by labour…comes to be confined to a few very simple operations…the man whose whole life is spent in performing a few simple operations…has no occasion to exert his understanding, or to exercise his invention in finding out expedients for removing difficulties which never occur (781-782).
Much of the scholarship on this passage focuses on Smith’s discussion of education and how some state-provided education can help offset the adverse effects of the division of labor. However, I wish to focus on a different implication of Smith’s comment: the division of labor means a division of knowledge.
In the passage quoted above, Smith is making explicit something that is implicit throughout his earlier discussion in Book I on the division of labor: as we become specialized in our tasks, we continue to acquire knowledge in those tasks. However, that increasingly specialized knowledge comes at the expense of other types of knowledge out there. The man who draws the wire for a pin may have lots of knowledge and information about pin wire. He may be able to tell quality or know the limitations of the material he is given. But that knowledge comes at the expense of knowing how to create the head. In our modern language, we call such specialized knowledge “expertise.” Thus, there is a trade-off to the division of labor (and, consequently, the division of knowledge): “[The laborer’s] dexterity at his own particular trade seems…to be acquired at the expence [sic] of his intellectual, social, and martial virtues” (782). This “torpor of the mind” that develops from doing the same tasks day-in and day-out can render a man incapable of judging the needs and extensive interests of his country, as well as other civic-minded needs.
In connection with previous statements Smith made elsewhere in The Wealth of Nations, this discussion of the division of knowledge is interesting. For example, in Book IV, Smith writes: “What is the species of domestick [sic] industry which [the businessman’s] capital can employ, and of which the produce is likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge much better than any statesman or lawgiver can do for him” (456). Typically this passage is interpreted in light of the sentences that follow, where Smith contends that such actions by statesmen to direct economic activity both “loads himself with a most unnecessary attention” and “assume[s] an authority which could safely be trusted, not only to no single person, but to no council or senate whatever.” However, the division of knowledge Smith discusses in Book V as a consequence provides us with another understanding of Smith’s concerns. The statesman does not have the necessary knowledge to direct capital; the local owner, though the division of knowledge, is in a better knowledge situation to judge.
The statesman or ambassador is meant to serve political ends. They are “insidious and crafty” (468). When those guiles are applied to negotiations with foreign nations and the statesman is able to “dupe” the foreign minister, he is to be applauded (Theory of Moral Sentiments, 154). Thus, their specialized knowledge is directed toward those political ends. In politics, that knowledge is valuable. In commerce and civil society, the knowledge of guile is dangerous: “We trust the man who seems willing to trust us…Reserve and concealment, on the contrary, call forth diffidence. We are afraid to follow the man who is going we do not know where” (TMS, 337).
The Theory of Moral Sentiments also shows concern about the division of knowledge leading to undesired outcomes. For example, Smith discusses how a soldier who is used to submitting to the “disagreeable duty” of war can lose his principle of humanity (153). The soldier may be the model of self-command, but he lacks the necessary humanity that allows civilization to thrive. The soldier knows war; he does not know peace.
The division of labor implies a division of knowledge. That division of knowledge can render a man incapable of judging the needs of society to the extent that they are beyond his specialized area of expertise. But the fact that an individual may be unknowledgeable outside his area of expertise does not, for Smith, imply the need for some centralized agent. He recognizes multiple times that politicians can suffer the same problems. Thus, Smith relies heavily on a presumption of liberty: let men operate in the manner that allows them to best direct their efforts wherever they can be profitably deployed. With their unique power to violate the rules of justice, governments ought only to intervene when necessary. They, too, are limited in their cognitive abilities. They, too, exist within a world of the division of knowledge. They, too, benefit from such a division but can also suffer from a “torpor of the mind.”
Related Links
Michael Munger, Division of Labor Part 3: The System of Exchange
An Animal That Trades video series, Part 3: Division of Labor
Jack Weinstein, Adam Smith on Education: Schooling
Jon Murphy, Adam Smith and the Presumption of Liberty
Comments
Adam Smith on Infrastructure
Maryann Keating for AdamSmithWorks
Is keeping up with other advanced economies a sufficient justification for increased national spending on infrastructure?
Is keeping up with other advanced economies a sufficient justification for increased national spending on infrastructure?
Adam Smith dared to answer, “No.”
Unexpected Insights of David Hume
Edwin van de Haar for AdamSmithWorks
His ideas were like those of his younger friend Adam Smith, but Hume did not write a huge and influential book such as Smith’s The Wealth of Nations (1776). Nevertheless, it should not be overlooked that his economic ideas were put in print long before Smith’s.
His ideas were like those of his younger friend Adam Smith, but Hume did not write a huge and influential book such as Smith’s The Wealth of Nations (1776). Nevertheless, it should not be overlooked that his economic ideas were put in print long before Smith’s.
Rose Wilder Lane and the American Libertarian Movement
Alice Temnick for AdamSmithWorks
In Part II of her review of Caroline Fraser's Prairie Fires, Alice Temnick explores the life and personality of Rose Wilder Lane, daughter of the author of the Little House on the Prairie books.
In Part II of her review of Caroline Fraser's Prairie Fires, Alice Temnick explores the life and personality of Rose Wilder Lane, daughter of the author of the Little House on the Prairie books.
Adam Smith and the Highlanders
Renee Wilmeth for AdamSmithWorks
The Outlander Kitchen: The Official Outlander Companion Cookbookfeatures a simple Cock-a-leekie soup, a classic chicken soup with vegetables that’s been a Scottish classic since at least the 17th century. The first recipes for a chicken leek soup appeared before it was ever named “Cock-a-Leekie” which didn’t appear until the late 18th century.
The Outlander Kitchen: The Official Outlander Companion Cookbookfeatures a simple Cock-a-leekie soup, a classic chicken soup with vegetables that’s been a Scottish classic since at least the 17th century. The first recipes for a chicken leek soup appeared before it was ever named “Cock-a-Leekie” which didn’t appear until the late 18th century.
Adam Smith and Kidney Exchange
Walter Castro and Julio J. Elías for AdamSmithWorks
Castro and Elías return with more Smithian insights into the logic of altruism and the design of kidney exchange markets.
Castro and Elías return with more Smithian insights into the logic of altruism and the design of kidney exchange markets.
Prudence on the Prairie
Alice Temnick for AdamSmithWorks
Laura Ingalls Wilder's Little House on the Prairie books captivated generations of readers. Now the author is the subject of an award-winning historical biography by Caroline Fraser, Prairie Fires.
Laura Ingalls Wilder's Little House on the Prairie books captivated generations of readers. Now the author is the subject of an award-winning historical biography by Caroline Fraser, Prairie Fires.
The Singular Significance to Smith of Claude Buffier
Graham McAleer for AdamSmithWorks
In this post, Professor McAleer shows how Claude Buffier (a "learned Jesuit") influenced Smith's axiology, or his study of the nature of value and valuation.
In this post, Professor McAleer shows how Claude Buffier (a "learned Jesuit") influenced Smith's axiology, or his study of the nature of value and valuation.
Moral Sentiments, Active and Passive
Daniel B. Klein for AdamSmithWorks
June 21, 2021
June 21, 2021
Klein walks us through Adam Smith's implicit distinction between active and passive moral sentiments.
Free Trade in Language: Adam Smith on Words and Wine
Sarah Skwire for AdamSmithWorks
Since Smith was clearly at peace with the idea of importing French wines, why does he object to importing French words?
Since Smith was clearly at peace with the idea of importing French wines, why does he object to importing French words?
FDR versus Liberalism: Quotations from David Green, 1987
Daniel B. Klein for AdamSmithWorks
June 3, 2021
In this post, economist Daniel B. Klein unpacks the relationship between President Franklin D. Roosevelt and the meaning of the word "liberalism," drawing on David Green's 1987 book, The Language of Politics in America: Shaping Political Consciousness from McKinley to Reagan.
June 3, 2021
In this post, economist Daniel B. Klein unpacks the relationship between President Franklin D. Roosevelt and the meaning of the word "liberalism," drawing on David Green's 1987 book, The Language of Politics in America: Shaping Political Consciousness from McKinley to Reagan.
Adam Smith in the Narrow Corridor
Shanon FitzGerald for AdamSmithWorks
Adam Smith understood that freedom is not the natural order of things. Do we?
Adam Smith understood that freedom is not the natural order of things. Do we?
Adam Smith's Lost Loves
Enrique Guerra-Pujol for AdamSmithWorks
Did Adam Smith know what it was like to be in love? Here's a law professor's primer on the evidence.
Did Adam Smith know what it was like to be in love? Here's a law professor's primer on the evidence.
Smith on Rousseau
Daniel B. Klein for AdamSmithWorks
May 3, 2021
In this video, Daniel B. Klein speaks about the historical and intellectual relationship between Adam Smith and Jean-Jacques Rousseau.
May 3, 2021
In this video, Daniel B. Klein speaks about the historical and intellectual relationship between Adam Smith and Jean-Jacques Rousseau.
Smithian Patriotism: A Tale of Two Professor Smiths
Kenly Stewart for AdamSmithWorks
There is much for the modern day Smithian to consider in Professor Steven B. Smith's new book, Reclaiming Patriotism in an Age of Extremes.
There is much for the modern day Smithian to consider in Professor Steven B. Smith's new book, Reclaiming Patriotism in an Age of Extremes.
Adam Smith and the Market for Kidneys for Transplantation
Walter Castro and Julio J. Elías for AdamSmithWorks
Could the kidney transplantation system benefit from an injection of Adam Smith's ideas? Authors Castro and Elias, drawing on research published with Gary Becker, share their analysis below.
Could the kidney transplantation system benefit from an injection of Adam Smith's ideas? Authors Castro and Elias, drawing on research published with Gary Becker, share their analysis below.
Adam Smith y Política Fiscal
Thelmo Vargas-Madrigal for AdamSmithWorks
Costa Rican economist Thelmo Vargas-Madrigal explains the relevance of Adam Smith's Wealth of Nations to modern discussions of public policy and the provision of public goods.
Costa Rican economist Thelmo Vargas-Madrigal explains the relevance of Adam Smith's Wealth of Nations to modern discussions of public policy and the provision of public goods.
Adam Smith on Fiscal Policy
Thelmo Vargas-Madrigal for AdamSmithWorks
Costa Rican economist Thelmo Vargas-Madrigal explains the relevance of Adam Smith's Wealth of Nations to modern discussions of public policy and the provision of public goods.
Costa Rican economist Thelmo Vargas-Madrigal explains the relevance of Adam Smith's Wealth of Nations to modern discussions of public policy and the provision of public goods.
Adam Smith on the Interests of Labor and Business
Alex Aragona for AdamSmithWorks
According to Smith, to understand business economics we need to see that both labor and business should be recognized as classes, and that both pursue separate interests and agendas that sometimes conflict.
Adam Smith on Political Parties
Max Skjönsberg for AdamSmithWorks
Smith had both understanding of and insight into political parties, and while he spoke candidly about their harmful effects, he also believed that they could play an important role in reforming abuse and securing tranquility and happiness in the state.
Smith had both understanding of and insight into political parties, and while he spoke candidly about their harmful effects, he also believed that they could play an important role in reforming abuse and securing tranquility and happiness in the state.
Benevolence, Beneficence, and Beneficialness
Daniel B. Klein for AdamSmithWorks
March 15, 2021
What do these "three B's" have to do with the sentiment of gratitude? Daniel B. Klein explains.
March 15, 2021
What do these "three B's" have to do with the sentiment of gratitude? Daniel B. Klein explains.
How to Read a Book Inspectionally
Art Carden for AdamSmithWorks
Inspectional reading is a tool that can make us better readers, scholars, and lifelong learners.
Inspectional reading is a tool that can make us better readers, scholars, and lifelong learners.
Devoured by Wild Beasts or Drowned Like Puppies? With Markets, Neither
Maria Pia Paganelli for AdamSmithWorks
Adam Smith understood that prosperity decreases desperation and spares the lives of many infants, older persons, and vulnerable others who cannot participate directly in production. Have today's critics of markets forgotten this lesson?
Adam Smith understood that prosperity decreases desperation and spares the lives of many infants, older persons, and vulnerable others who cannot participate directly in production. Have today's critics of markets forgotten this lesson?
Smithian Exchange Among Non-Human Animals
James E. Hanley for AdamSmithWorks
Smith wrote about the human propensity to "truck, barter, and exchange," but the modern science of animal behavior suggests that we are not exactly alone in this capability.
Smith wrote about the human propensity to "truck, barter, and exchange," but the modern science of animal behavior suggests that we are not exactly alone in this capability.
The Moon Phase Watch and Adam Smith’s Philosophy of History
Graham McAleer for AdamSmithWorks
Adam Smith, Francis Fukuyama, and the Indignity of UBI
Thomas Koenig for AdamSmithWorks
UBI does not speak to the demands of dignity, nor to the Smithian needs to be seen and respected.
UBI does not speak to the demands of dignity, nor to the Smithian needs to be seen and respected.
Bargaining with the Butcher, Baker, and Brewer: A New Look at Smith’s Most Famous Sentences
Jacob Sider Jost for AdamSmithWorks
Our desire to persuade each other is not reducible to our pursuit of self-interest in a narrow material sense; it is rather a deep feature of human nature, one we share with the men and women whom we rely on for our food.
Our desire to persuade each other is not reducible to our pursuit of self-interest in a narrow material sense; it is rather a deep feature of human nature, one we share with the men and women whom we rely on for our food.
Profitable Business: Adam Smith’s Moral Assessment
Gregory Robson for AdamSmithWorks
What we get in Smith is not a utopian view of profitable business, but a humane and realistic assessment of the power of firms and the markets in which they operate to do good in the world.
What we get in Smith is not a utopian view of profitable business, but a humane and realistic assessment of the power of firms and the markets in which they operate to do good in the world.
What Adam Smith Ate: Christmas Punch
Renee Wilmeth for AdamSmithWorks
Smith would have enjoyed his favorite claret, what we would call Bordeaux today, as well as, perhaps, a Christmas punch.
Smith would have enjoyed his favorite claret, what we would call Bordeaux today, as well as, perhaps, a Christmas punch.
Adam Smith Wishes You a Mereology Christmas
Graham McAleer for AdamSmithWorks
Aristotle’s proposition that individuals belong more to the republic than to themselves folds the part (individual) into the whole (polity). This mereology collapsed, argues Strauss, when people adopted the Christian belief in a personal transcendent destiny and a loyalty to a kingdom beyond this world.
Aristotle’s proposition that individuals belong more to the republic than to themselves folds the part (individual) into the whole (polity). This mereology collapsed, argues Strauss, when people adopted the Christian belief in a personal transcendent destiny and a loyalty to a kingdom beyond this world.
Happiness in Times of Crisis
Garret Edwards for AdamSmithWorks
By François Topino-Lebrun - Public Domain
"In highlighting the anecdote of Pyrrhus and Cineas, Smith moves away from an answer to the happiness question that is merely economic or material."
"In highlighting the anecdote of Pyrrhus and Cineas, Smith moves away from an answer to the happiness question that is merely economic or material."
Adam Smith Wants you to ENJOY the Holidays
James E. Hartley for AdamSmithWorks
...the holidays are coming and the goose is getting…dropped from the menu. Multiply that by all those things you used to do and will not be doing this year, and it all seems rather bleak. But, why? Why aren’t you excited that your forthcoming celebrations are going to be novel and different?
...the holidays are coming and the goose is getting…dropped from the menu. Multiply that by all those things you used to do and will not be doing this year, and it all seems rather bleak. But, why? Why aren’t you excited that your forthcoming celebrations are going to be novel and different?
Adam Smith’s Readers in Eighteenth-Century Libraries
Max Skjönsberg for AdamSmithWorks
One way to investigate the broader impact of Smith’s writings is through the lens of eighteenth-century subscription libraries.
One way to investigate the broader impact of Smith’s writings is through the lens of eighteenth-century subscription libraries.
Adam Smith on the Emergent Meaning of “Stuff”
Lauren Hall for AdamSmithWorks
While it’s not in the nature of Smith to wax too philosophical over human meaning, I think his treatment of property, combined with the themes of spontaneous order and emergent meaning that thread their way throughout his work, can help us come to terms with and understand the role that property or “stuff” plays in our lives and why it matters.
While it’s not in the nature of Smith to wax too philosophical over human meaning, I think his treatment of property, combined with the themes of spontaneous order and emergent meaning that thread their way throughout his work, can help us come to terms with and understand the role that property or “stuff” plays in our lives and why it matters.
The Sympathetic Businessman
Jon Murphy for AdamSmithWorks
July 17, 2020
Maugham's story is worth a read for entertainment, but it also highlights an important aspect of commerce: the necessity of sympathy.
July 17, 2020
Maugham's story is worth a read for entertainment, but it also highlights an important aspect of commerce: the necessity of sympathy.
Adam Smith and the Costs of the Division of Labor
Alex Aragona for AdamSmithWorks
July 3, 2020
One shouldn’t be satisfied with any discussion of the division of labor that leaves consideration of the costs off the table.
July 3, 2020
One shouldn’t be satisfied with any discussion of the division of labor that leaves consideration of the costs off the table.
The Hopeful Vision of Saint Augustine and Adam Smith
Kenly Stewart for AdamSmithWorks
June 22, 2020
Here I use Tertullian’s formula to ask a different question, “What has Glasgow to do with Hippo?”
June 22, 2020
Here I use Tertullian’s formula to ask a different question, “What has Glasgow to do with Hippo?”
"Saving Adam Smith" Saves My Economics Class
Leah Kilfoyle for AdamSmithWorks
June 19, 2020
Saving Adam Smith hit the bullseye for my most recent search for a book that not only covers a number of my state’s standards, but demystifies the broader understanding of Adam Smith’s economics.
June 19, 2020
Saving Adam Smith hit the bullseye for my most recent search for a book that not only covers a number of my state’s standards, but demystifies the broader understanding of Adam Smith’s economics.
Joseph Banks
Carl Oberg for AdamSmithWorks
June 15, 2020
"...Banks, perhaps instinctively, knew more about economic change than his educational and scientific background let on."
June 15, 2020
"...Banks, perhaps instinctively, knew more about economic change than his educational and scientific background let on."
Adam Smith and Jane Austen
Renee Wilmeth for AdamSmithWorks
June 5, 2020
The similarities in Smith’s descriptions of moral weakness and Austen’s descriptions of people were undeniable. It was as if I could assign a different character in the book to each of Smith’s passages on moral philosophy.
June 5, 2020
The similarities in Smith’s descriptions of moral weakness and Austen’s descriptions of people were undeniable. It was as if I could assign a different character in the book to each of Smith’s passages on moral philosophy.
The East Asian economic miracle: An iron hand, or an invisible one?
Rob York for AdamSmithWorks
May 18, 2020
A great leader isn’t necessary for great results, and an invisible hand beats an iron one any day.
May 18, 2020
A great leader isn’t necessary for great results, and an invisible hand beats an iron one any day.
Fighting COVID-19 with Pretty Machines
Rachel Lomasky for AdamSmithWorks
May 4, 2020
Today’s machines are even prettier than the cleverly rigged piece of rope Smith admires. They are robots that help enable the prosperity of modern society. And during this time of global epidemic, their result is more than mere diversion.
May 4, 2020
Today’s machines are even prettier than the cleverly rigged piece of rope Smith admires. They are robots that help enable the prosperity of modern society. And during this time of global epidemic, their result is more than mere diversion.
The 18th Century and Social Networking
Carl Oberg for AdamSmithWorks
April 27, 2020
“...The mirth of … company is highly agreeable to him, and he regards this correspondence of their sentiments with his own as the greatest applause.”
April 27, 2020
“...The mirth of … company is highly agreeable to him, and he regards this correspondence of their sentiments with his own as the greatest applause.”
Pro-Slavery, Anti-Smith
Timothy Sandefur for AdamSmithWorks
March 16, 2020
It’s unlikely that Burke imagined, when sneering at “economists” in his Reflections, that his defense of feudal hierarchy would later serve as the foundation for a bloody rebellion aimed at perpetuating chattel slavery.
March 16, 2020
It’s unlikely that Burke imagined, when sneering at “economists” in his Reflections, that his defense of feudal hierarchy would later serve as the foundation for a bloody rebellion aimed at perpetuating chattel slavery.
What Would Adam Smith Say About Fasting?
Nathanael Snow for AdamSmithWorks
March 9, 2020
To become willing to share bread with the hungry and to enter into solidarity with the suffering of others requires the activation of what Adam Smith calls sympathy, the ability to enter into another person’s sentiments through imagining one’s self in her place.
March 9, 2020
To become willing to share bread with the hungry and to enter into solidarity with the suffering of others requires the activation of what Adam Smith calls sympathy, the ability to enter into another person’s sentiments through imagining one’s self in her place.
Adam Smith in the Car and in the Classroom
Andrew Smith for AdamSmithWorks
February 24, 2020
“Dad, what if there were no money? What if we could have everything we wanted and not have to pay for it?”
February 24, 2020
“Dad, what if there were no money? What if we could have everything we wanted and not have to pay for it?”
The Future of Farmers – Adam Smith Weighs In
Paul Schwennesen for AdamSmithWorks
February 17, 2020
The ailment, clearly, is not affecting farming, but farmers, historically understood. Our issue is a social one, not a technical one.
February 17, 2020
The ailment, clearly, is not affecting farming, but farmers, historically understood. Our issue is a social one, not a technical one.
The Imitative Arts: Some Fun with Adam Smith’s Artistic Opinions
Maryann Corbett for AdamSmithWorks
January 13, 2020
In his essay on the arts, Smith says much that now looks wrong, but his questionable claims might be the most interesting things he has to say.
January 13, 2020
In his essay on the arts, Smith says much that now looks wrong, but his questionable claims might be the most interesting things he has to say.
The Unexpected Joy in Sharing Sadness
Shal Marriott for AdamSmithWorks
January 6, 2020
There are many lessons to be taken away from The Theory of Moral Sentiments... Yet an unexpected but important takeaway, is that we all should take a little bit more time to be sad.
January 6, 2020
There are many lessons to be taken away from The Theory of Moral Sentiments... Yet an unexpected but important takeaway, is that we all should take a little bit more time to be sad.
Adam Smith and Slavery
Matthew Lowenstein for AdamSmithWorks
December 2, 2019
...is he right on the economics? That is, are there instances when slave labor could, at least conceptually, more effectively mobilize and accumulate capital than free labor?
December 2, 2019
...is he right on the economics? That is, are there instances when slave labor could, at least conceptually, more effectively mobilize and accumulate capital than free labor?
Can We Become the Impartial Spectator?
Nir Ben-Moshe for AdamSmithWorks
November 11, 2019
To what extent did Smith believe we can become the impartial spectator?
November 11, 2019
To what extent did Smith believe we can become the impartial spectator?
Guns, Foreigners, and a Twist Ending
A Modern Lawyer and Smith’s Lectures on Jurisprudence, Part 5
October 28, 2019
Clark Neily for AdamSmithWorks
October 28, 2019
Clark Neily for AdamSmithWorks
How to Get Rich by Not Influencing People
A Modern Lawyer and Smith’s Lectures on Jurisprudence, Part 4
October 21, 2019
Clark Neily for AdamSmithWorks
October 21, 2019
Clark Neily for AdamSmithWorks
There's No Such Thing as Deregulation
with your scholar-host Dylan DelliSanti
April 8, 2019
“Deregulation” frequently conjures up the image of rich CEOs freed to do as they please without restraint or punishment like some sort of corporate Wild West. The regulation/deregulation dichotomy creates the impression that regulated markets are stable and orderly whereas deregulated markets are chaotic and wild – the “anarchy of production” as Karl Marx might have described it.[1]
April 8, 2019
“Deregulation” frequently conjures up the image of rich CEOs freed to do as they please without restraint or punishment like some sort of corporate Wild West. The regulation/deregulation dichotomy creates the impression that regulated markets are stable and orderly whereas deregulated markets are chaotic and wild – the “anarchy of production” as Karl Marx might have described it.[1]
