Smith’s theory of markets works on the assumption that the profits of higher labor productivity would obviously be passed along to workers as higher wages—giving them an incentive to put up with the monotony of subdivided work. And in the late 1700s, that might have worked. Businesses were much smaller back then—Smith’s pin “factory” had just ten workers, who’d be doubly motivated by working alongside a boss they knew personally and sharing in the profits. That system has a ceiling, though. Once a company grows to employ more than a couple hundred workers in more and more complicated jobs, it
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