EconAir

ADAM SMITH VISITS A PIN FACTORY   Adam Smith’s description of a pin factory is on the first page of  The Wealth of Nations .  (Chapter 1 – “Of the Division of Labour”)  Drawings of pin factories of this period show workers using hand tools. Smith says the process can be broken down into 18 distinct steps, including packaging the pins. Smith mentions that pin factory workers were poorly paid, despite their high productivity.    Adam Smith says he visited a pin factory employing 10 men who produced 48,000 pins per day.  If each of the ten workers had done all the steps themselves, Smith says each worker could produce only 10 or 20 pins per day.  So the pin factory replaces 2,400 to 4,800 pin makers. The increase in labor productivity (output per person per day) is as high as 50 times that of individual pin makers.     This reduction in unit cost or average cost (AC) and the huge increase in quantity produced do not just replace older methods of organization and production.  They increa

Berkeley 1962 - 30 students against racial discrimination I was mildly political in high school. In 1960, I picketed the Democratic Convention that was in L.A. with a small group of radical Quakers protesting atmospheric testing of atomic weapons. The protest was in front of the Biltmore Hotel, where the candidates were staying. We were outnumbered by federal agents with cameras. After our little protest, I wandered into the Biltmore. While loitering in the main corridor, John Kennedy walked by. He was a few feet away. I didn’t think anything of it until his brother was assassinated eight years later in a different Los Angeles hotel. Looking back, I was amazed at the lack of security. A kid in a protest just walks into the hotel – no security at the door, no identity checks, very little security (if any) around Kennedy. I guess all the government agents were too busy developing the film they took of our protest and writing detailed reports on how Quakers were threatening America’s secu