Principle of division of labor-urgency.

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Division of labor has become a factor of economic growth through its great influence on labor productivity.

First, division of labor can increase proficiency;

Second, the division of labor can save labor time;

Third, the division of labor is conducive to the invention of new machines.

The combination of the three means that the division of labor can increase the output of workers per unit time, that is, improve labor productivity, thus increasing the wealth of a country.

Under the current social conditions, the economy has achieved rapid development and the division of labor has deepened day by day. The number of industries with division of labor is increasing, and the scope of division of labor is expanding. Now every country expects to actively participate in the international division of labor and gain the benefits of economic globalization, and closed countries are bound to fall behind. This is actually the result of internationalization of division of labor. Then, from the perspective of economic development, we can make the following assumptions: division of labor promotes economic development, and economic development further promotes division of labor; The degree of division of labor and specialization is directly proportional to the level of economic development between countries and regions. Smith only emphasized the role of division of labor in economic growth, but did not point out the influence of economic development on division of labor, so there are defects in explaining the circular growth and economic cycle of the economy. In any case, will economic development expand the division of labor indefinitely?

The reason for the division of labor is people's desire for exchange driven by self-interest. People are willing to participate in the division of labor because they are engaged in the production of a single product, and the sum of the products obtained after the exchange is greater than the production of multiple products. Exchange is the reason for the division of labor. Where there is division of labor, there is exchange, and where there is exchange, there is market connection. Smith and many scholars have suggested that the division of labor depends on the capacity of the market. The market capacity is large, and the scope of division of labor is large. It can be seen that today's regional economic integration can expand the market scope and deepen the division of labor, thus strengthening exchanges and trade between regions and greatly promoting economic development. However, this does not fully explain that the division of labor can develop indefinitely. People engaged in division of labor and specialized production can save time and reduce production costs, but if they want to exchange, they must pay a certain amount of time and expenses, that is, transaction costs. If the transaction cost is greater than the cost reduced by division of labor. Then, people are unwilling to participate in the division of labor. Therefore, the division of labor is limited to some extent, which Smith and some later economists ignored. The division of labor depends not only on the capacity of the market, but also on the degree of development of the market. The higher the degree of market development, the more conducive to reducing transaction costs; Instead, it will increase transaction costs. The degree of market development includes market capacity, which is only a static concept. Therefore, it is not difficult for us to understand that in remote mountainous areas with extremely low marketization, it is difficult for people to improve labor productivity and get rid of poverty and backwardness because they are far from the market and are mostly engaged in self-sufficient product production.

People's production under the division of labor is a kind of production that satisfies both themselves and others. In the case of incomplete market information, shortage and surplus will inevitably coexist, which denies the assumption of full employment. To a certain extent, it is one of the biggest hidden dangers of economic crisis in capitalist socialized production. In addition, division of labor and social ethics will also conflict. When a person is born, he is no different from a simple natural form. However, as individuals in society, people often have different social status and remuneration because of different industries. Some people try to get fairness from the different complexity of labor in people's industries. Some people also use the concept of morality to bind people's minds with labor that does not distinguish between high and low. However, social inequality is a problem in any country today. If all people are engaged in the same self-sufficient labor and people only produce for themselves, then there will be no inequality. Similarly, social development may also stagnate. Therefore, the inequality caused by division of labor can not be solved through non-division.

Three. conclusion

Based on the above point of view, I think: the division of labor is the main reason for economic growth, but also the micro-foundation of economic progress. I support Mr. Yang Xiaokai's criticism. Neoclassical economics sublates the core of division of labor, and modern economics should return to classicism to some extent. Social and economic problems should be explained to a great extent by the theory of division of labor.