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What He Saw in a Pin Factory

People Who Divided the Work · Adam Smith (1776)

👤History✦AI-generatedEconomics & Finance · Aug 2, 2026

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What He Saw in a Pin Factory

Your child listens; you read. This page is here so you can answer the questions that come after the story. The script itself is available from the script button while the audio plays.

What this episode covers

Making a single pin takes eighteen separate jobs. One person doing all of them struggles to make twenty pins in a day. Ten people sharing the work made forty-eight thousand.

That one number carries the whole idea of the division of labour, and explains how nearly everything we own gets made. The episode then ends with the warning the same author placed later in the same book.

What actually happened

  • Adam Smith (1723–1790), a Scottish professor of moral philosophy. His lifelong question was why some nations are wealthy and others poor.
  • In 1776 he published An Inquiry into the Nature and Causes of the Wealth of Nations. Book I, Chapter 1 opens with the pin factory.
  • From the text: pin-making is divided into about eighteen distinct operations — drawing the wire, straightening it, cutting it, pointing it, preparing the end to receive the head, making the head, attaching it, whitening the pin, and even placing the finished pins into paper.
  • Working alone, he wrote, a worker could scarcely make twenty pins a day — perhaps not one.
  • In the small factory he describes, ten people made about forty-eight thousand pins a day — 4,800 each.
  • Smith gives three reasons: ① skill improves with repetition ② no time is lost switching tasks ③ people focused on one task invent better tools and methods.
  • And in Book V of the same work he warns the other way. A person who spends a life on one or two simple operations has no occasion to use their understanding and may become, in his words, as stupid as it is possible for a human creature to become. For that reason he argued that the state should provide basic education.

Questions your child may ask

"Why is sharing the work faster?" Rather than listing all three reasons, connect it to your child's own experience. Tying shoelaces, using chopsticks — repetition makes anyone faster. And "switching costs time" becomes obvious during tidying up or colouring, where changing tools constantly slows everything down.

"So is it bad when one person makes the whole thing?" No. Making something end to end — woodwork, cooking — has a different kind of value. Smith's point was that dividing work produces more, not that dividing is always right.

"You really can't make a pencil by yourself?" You can't. Different people cut the wood, mined the graphite, made the rubber, formed the metal band. Pick one object at home and count together how many pairs of hands it passed through. That makes the episode concrete.

"Why was Smith worried?" Because repeating one movement leaves no room to think. In today's terms: work can narrow a person. It is a good place to plant the idea that even good things carry a cost.

"Is it still like that?" Yes. Factories, offices, hospitals and schools all run on divided work. And Smith's worry is still with us — as machines take over repetitive tasks, it has reshaped itself into the question of which work should stay with people.

Ideas inside the story

  • Division of labour — splitting work multiplies what a group can produce.
  • Switching cost — every change of task consumes time and effort.
  • The price of a good thing — what is lost when productivity rises.

What is evidence, and what is received story

Actually in the original text The eighteen operations, the claim that one worker alone could scarcely make twenty pins, ten workers making forty-eight thousand, 4,800 each, the three reasons, and the Book V warning together with the argument for public schooling. All of it is in the Wealth of Nations itself.

Why the sourcing works differently here A 1776 book has no abstract the way a modern paper does — in our own Shoulders of Giants entry, the abstract field holds only a digitisation note. So this episode is grounded in the original text rather than an abstract. The work is in the public domain, so anyone can check it.

Simplified Smith does not name the factory or the date of his visit, so the story says only "a small pin factory." The figure of forty-eight thousand reflects what he observed and was told; other workshops of the period differed.

Sources and what followed

Original work — Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations (1776), Book I, Chapter 1. Listed in Paperis' Shoulders of Giants under economics.

What this idea led to

  • Factories and mass production — the assembly line, and today's global supply chains, are extensions of the same principle.
  • International trade — the notion that countries too should specialise (comparative advantage) grows from here.
  • The argument about work — Smith's warning became the starting point for two centuries of debate about working conditions, education and automation. That argument is not finished.

Try this together

  • A paper-folding experiment. Make ten paper aeroplanes twice: once with one person doing every fold, once with the family splitting the steps. Time both. The number appears right in front of you.
  • Choose an object at home and count together how many people it took to make it.
  • Pick one thing your child enjoys and repeat it at the same time each day for a week. Compare the first day with the last. That is what skill feels like from the inside.

🏛️ Landmark papers behind this article

Source papers that made it into 'Shoulders of Giants' — the foundational works. Now that you have the concept, go to the origin.

  • An Inquiry into the Nature and Causes of the Wealth of Nations1776

    The foundational text of modern economics that established the theoretical basis for free-market capitalism.

    More in this field →
Sources (2)
  • An Inquiry into the Nature and Causes of the Wealth of Nations (1776)PMID openalex:W2912293881
  • Adam Smith: The Wealth of Nations Year: 1776 (2025)DOI 10.3735/9781961844384.book-part-003
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