Source: EconLog
by Eric Schliesser
“The bottom-up mechanism of technological improvement that Smith showcases in the very first pages of Wealth of Nations shapes the division of labor. These technological improvements contribute to growing production (and to growing markets with more room for subdivision), capital’s profit, and cheaper goods and so raising living standards. Capital accumulation is an effect, not the cause, of technological innovation, and not just the result of the prudential habit to save.” (03/11/26)
https://www.econlib.org/library/columns/y2026/schiesser-wn250-1