# Difference of Talents ## Definition The observable variation in skills, aptitudes, and abilities among individuals in different occupations. Smith makes the striking argument that this difference is largely the effect rather than the cause of the division of labour: people are born with roughly equal abilities, and it is their different occupations, shaped by habit, custom, and education, that create the apparent differences. He contrasts humans with dogs, where natural breed differences are far greater but cannot be made useful because animals lack the capacity for exchange. ## Source Chapter Book I, Chapter 2: "Of the Principle which gives Occasion to the Division of Labour" ## Context This argument occupies the final portion of the chapter. Smith uses it to reinforce his claim that exchange, not innate difference, is the driver of specialisation. The philosopher and the street porter were "very much alike" until different employments shaped them differently. ## Economic Domain General Theory ## Smith's Original Wording "The difference of natural talents in different men, is, in reality, much less than we are aware of; and the very different genius which appears to distinguish men of different professions, when grown up to maturity, is not upon many occasions so much the cause, as the effect of the division of labour."