# Productive Powers of Labour

## Definition

The capacity of human labour to produce output, measured in terms of the
quantity and quality of goods a given number of workers can produce within
a given time. Smith argues that the division of labour is the primary cause
of increases in productive power, and that differences in productive power
explain differences in national wealth.

## Source Chapter

Book I, Chapter 1: "Of the Division of Labour"

## Context

Smith introduces productive powers as the dependent variable that the division
of labour improves. He contrasts the output of an unskilled individual worker
(one pin per day) with the output of a coordinated team under division of
labour (4,800 pins per person per day) to demonstrate the scale of improvement.

## Economic Domain

Production

## Smith's Original Wording

"This great increase in the quantity of work, which, in consequence of the
division of labour, the same number of people are capable of performing, is
owing to three different circumstances."