22 lines
1.0 KiB
Markdown
22 lines
1.0 KiB
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-04 -->
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# Natural Division of Labour
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## Definition
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The spontaneous organization of economic activities into specialized tasks and employments that emerges without artificial intervention, based on natural market forces, comparative advantages, and the inherent characteristics of different economic activities. This division represents the optimal allocation of resources and labour that would occur in the absence of distorting policies or regulations.
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## Source Chapter
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Book IV, Chapter 4
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## Context
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Smith argues that drawbacks are designed not to overturn but to preserve this natural division of labour by preventing duties from artificially driving capital away from certain employments. The mechanism ensures that the balance which naturally establishes itself among various economic activities remains undisturbed by tax policies that would otherwise create artificial barriers to trade and specialization.
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## Economic Domain
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Production
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---
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