The Concept of Division of Labor in Capitalist Economy Summary

The Concept of Division of Labor in Capitalist Economy
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The Concept of Division of Labor in Capitalist Economy
The concept of division is a broad topic touching social, political, and economic perspectives, but any definition must indicate two different connotations. Basically, labor division refers to the separation of various entities in a particular society by human beings. In the economic context, labor division is the separation and specialization of workers into diverse economic activities to increase productivity and foster economic growth. In a capitalist economic context, division labor has an extensive historical background dating from ancient philosophers such as Aristotle to modern-day capitalist economists (Walker, 2019).
How is the division of labor important to the capitalist economy?
Capitalism is a mode of economic production in which private actors own and control production methods depending on their interests and demands. Capitalists set the price of their products in a market context aiming at maximum profit gain. Walker (2019) posited that the concept of division labor in the capitalist economy is essential because it encourages a business environment with specialization in the economy to earn an individual profit, which is the critical aspect of the capitalist economy.
Division of labor has helped business stakeholders to specialize in different fields in economic sectors such as trading, banking, and advertising. Due to diverse specializations, each capitalist conducts innovative measures to attracts more customers for individual profits (Walker, 2019). The specialization has created competition in capitalism. In this way, it promotes a new path for economic development and diversification since the primary goal is vested in personal gain where all business people try to improve areas of specialization.
The division of labor in the capitalist economy saves time since each individual is assigned the work to perform in an economic organization. As such, there is no time wastage when shifting from one occupation to another. The duties are delegated depending on the individual area of competence, thus marking the work to be executed without time wastage. This is because capitalist business enterprises focus on profit maximization motives and efficient resource utilization (Walker, 2019).
The division of labor facilitates business operations mechanization in a capitalist, particularly manufacturing. Automation ensures goods and services mass production. In this way, more goods reach the market, making the capitalist optimize its profit generation agenda, which is the key motive behind business operations (Walker, 2019). Walker furthe...