The Subject Matter of Economics and the Role of the Division Of Labour in Defining this Subject Matter

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TOC o “1-3” h z u Introduction PAGEREF _Toc316113969 h 3The Role of the “Division of Labour” In Defining the Subject Matter of Economics PAGEREF _Toc316113970 h 4Conclusion PAGEREF _Toc316113971 h 5References PAGEREF _Toc316113972 h 6

IntroductionEconomics may be defined in a multiplicity of ways. In the 19th century, it was characteristically described as the science of exchangeable wealth. Later in the 20th century, it has characteristically been defined as a science that investigates the allocation of limited means in the midst of contending ends. The subject matter of economics entails the production as well distribution of output. In the perspective of this paper, the subject matter of economics may be defined as the science that investigates the generation of wealth in a structure of division of labor. This means the creation of wealth in a system whereby the individual lives by what they produce, or assisting in the production. The produce is subsequently distributed by the labor of other workers. The rationalization of this definition becomes clearer in the investigation of the role of division of labour in the generation of wealth and its distribution (Acharya, 2000).

The significance of economics is derived from the specific significance of wealth. This entails well-being, human life, and material goods. The function of wealth in relation to human life is acknowledged on a common-sense foundation. Evidently, human life is dependent on clothing, food, and shelter. Furthermore, experience demonstrates that there is no limitation to the magnitude of wealth that individuals’ desire. It is also evident that the greatest amount of their working hours is essentially spent in labor to attain it. This means, in efforts to make a living. Hitherto the significance of wealth, by itself, is insufficient to determine the significance of economics (George, 2008).

The Role of the “Division of Labour” In Defining the Subject Matter of EconomicsThe wealth production fundamentally depends on division of labor. It is essential to note that the division of labor is an integral characteristic of all highly developed economic systems. It inspires basically all of the gains ascribed to technological advancement and the utilization of machinery and improved tools. Its existence is requisite for a rising and high productivity of labor, meaning the output per unit of labor. Similarly, its absence is a foremost characteristic of all backward economic systems (Acharya, 2000). Division of labor introduces a level of complexity in economic life that necessitates the existence of economics. This is because the division of labor involves economic phenomenon existing on a scale in time and space that makes it unattainable to comprehend them through personal observation and experience only. Economic life in a system of division of labor may be understood only through an organized science that proceeds through deductive reasoning from basic principles. This is the endeavor of the science of economics. Division of labor is therefore, the fundamental fact that demands the existence of the subject matter of economics. Despite its imperative significance, division of labor is a relatively topical phenomenon in history.

What makes the subject matter of economics necessary and imperative is the actuality that whereas human life as well as well-being is dependent on the generation of wealth, and the generation of wealth is dependent on the division of labor, division of labor cannot function or exist automatically. The functioning of division of critically depends on the institutions as well as laws that a country adopts. A country may adopt institutions and laws that facilitate for the growth and flourishing of the division of labor. For instance, in Canada, it is within the law to seek for a lucrative job although the prospects of getting one may be unequally distributed. A country may adopt institutions and laws that frustrate the growth and flourishing of division of labor. An example would be the nation of South Africa during the apartheid regime. Indeed, work availability as well as the wages paid is issues of fundamental concern. Thus, the significance of the subject matter of economics embraces contemporary material civilization. In the absence of the widespread division of labor, the production of contemporary vaccines and medicines, the provision of contemporary hygiene and sanitation, as well as production of sufficient food supplies would be impossible (Acharya, 2000).

While consumers would perceive that they make free choices in regard to their purchases, such a notion is entirely questionable in regard to production. It should be understood that production embraces combined efforts in two regards. Firstly, companies focus in the production of specific commodities. This implies that owners and workers of a furniture company can only obtain clothing through exchange. In this perspective, the furniture and clothing companies are reciprocally dependant on one another. Therefore, the specialization of different companies in the production of particular commodities goes together with the materialization of market exchange amongst the economic sectors. Market exchange would be impossible if individuals produced all they required. Secondly, not only is division of labour existent between companies specializing in the production of diverse commodities, but also within every company. Division of labour in companies is evident where the workers, under the authority of the managers and owners, specialize in specific tasks (George, 2008).

ConclusionIn investigating the role played by the division of labour in the subject matter of economics, in is essential to note that, production is a shared process in which producers specializing in the production of specific commodities, execute specific tasks. This means that, production mainly addresses the issue of who does what, while distribution deals with who acquires which portion of the jointly generated wealth. ReferencesAcharya S. (2000). Marx & the Division of Labor, Chicago: University of Illinois Press.

George, B. (2008). Labor Economics, New York: McGraw-Hill.