Lecture 3 Flashcards
effects of division of labour
Smith 1776
greatest improvement in the productive powers of labour
Pin factory - dividing the complex process into small, simple tasks observed vast improvement - skill, dexterity and judgement (discover more easier methods when attention minds is directed towards to single object rather than variety of things)
Market Exchange
specialise in one task and trade other from other specialist - existence of market exchange
each workman being exactly in same situation enable to exchange great quanity of won goods (surplus) for a price of great quantity of another
Self-interest - invisible hand
Marx 1867
Economies of Scale as production increases and average unit cost decreases (fixed cost of building/equipment is spread out over larger amount)
Capitalist Production
large number of workers (handcrafts become manufacturers as number of workers grow)
large quanitties of products & extensive scale
social force - new productive power which is intrinsically a collective one
specialisation leads to efficiency gain
Cooperation
numerous labours work together (side by side) according to a plan (whether in same process or in different but connected)
starting point of capitalist production
great number of workers working together, at same time, in one place so as to produce same output of commodity under the mastership of one capitalist
Sources of collective power of coorporation
boost mechanical force of labour
extend sphere of action over a greater space
set larger mass of labour to work in critically time
simultaneous operation
economies means of production by use in common (surplus value)
make individual/independent worker new character of social worker (brought together because of capital - exogenous factor)
need of capitalist
capitalist accummulates money to pay building, machinery, bring together worker and pay them at front (pay wages before output sold so as to ensure performance)
labourers cannot cooperate unless they are employed simultaneously by the same capitalist
labour-powers are brought simultaneously by him
Negative effects
affects intelligence & strength of worker
incapable of exerting any motivation to any other employments because dexterity of specific trade acquired at the expense of intellectual and virtues
allienation (hold up problem)
Marx - historical context
long hours and low pay
unrest & protest - work for whatever salary
periodic unemployment
two social classes
income disparity & life qualitie
no welfare state and no unversal right to vote (bougeousie wan´t interested)
Economies of Scale
average cost will reduce as fixed cost is spread over larger amounts
reduce learning cost
increase bargain power (increase power of exchange9
affect market structure (concentration, centralisation)
technological advances
Nature of DoL
Wealth of Nation 1776
settlement of large groups in one place (villages) people started to specialised in diff. tasks which gave rise to spontaneously appear a naturally/ physical place for exchange (markets) (exchange commodities for others)
DoL
workers doing similar jobs gathered together in places (manufacturies) - one could continue to subdivide diff. jobs into simple tasks
pin-manufactured example
Society
many big factories started to apply this concept - increase productivity & created more transparency in worker´s task
economies of scale
Marx
special form of cooperation - namely capitalist production is unethical (extract of SV and explotation of labor pwoer)
diff. between DoL in society and within firm - alienation and hold-up problem
difference in interest (SV)
discrepancies in power
income - wages
social classes
unemployement (threat was credible)
