Friday, 12 July 2013
Employees are specialists
Whenever we sell our labour we are participating in the division of labour. This means that we are selling expertise which is not available to the customer... we are giving them something they are unable to provide for themselves. We might think that it is preferable to live on our own and work on the land providing for ourselves. Whilst this is perhaps a viable option for some people we are not then taking advantage of the division of labour. If we just work for ourselves then we must become an expert in all of the things required to support ourselves. If we sell our labour then we will be able to purchase the labour of other people... all of them experts. When we sell our labour we sell expertise which is why the labour market enables good products to be made cheaply. If we each live on our own and produce our own food then we will not be reducing prices as a consequence of our expertise... this means that there will be less progress and more poverty. The division of labour enables people to become experts in their particular field which means that there are reduced prices and is more progress.
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