Saturday, August 30, 2008

Men Versus Machines

Free market principles are evident in Asian economies. However, isn't it also true that some Asian countries - Japan, for example – ascribe to an approach to economic development that emphasize government action to stimulate industry? Japan has had its economic troubles in recent years, as all countries do, but does its general success give credence to the theory that government should actively work to stimulate industry?

It is stated in Adam Smith's The Wealth of Nations that the invention of machines facilitated and abridged labor. Does this not also degrade man power and at the same time removes the opportunity for the laborer to develop skills in performing the task?

If every laborer has only one task to perform and specialized with, what if a situation comes that there is a need for a new man to perform such task isn't it that it will be more convenient to have a man who is already part of the company who could have learned the skill than to hire a new one?

Saturday, August 23, 2008

Humans Aren't Robots

Why do people have different incomes? Why do farmers get the least of benefits and regarded as the lowest class when they are the ones producing our basic necessities - food?

Following Smith's idea, shouldn't the government allot a bigger part of the tax to education and to our farmers? A huge bulk of our taxes only goes to the pockets of our corrupt officials who contribute nothing but plunder. How about a reform for the distribution of government capital (tax) to government employees, say a "sky scraper" raise for our beloved public school teachers?

Adam Smith offered that one of the solutions to improve and increase the speed of production is to apply the division of labor, and it seems to be true because the skill of the worker will be focused in what he/she always does. But humans by nature are bound to be creative and will always divert themselves to other things, what would be the effect of this to their work? and what can be done to satisfy their cravings for diversion?