Adam Smith, pins, ATMs, and Obama

Our community organizer president is hopelessly clueless about how our economy operates. But first a history lesson.

Of making pins and productivity:

To take an example, therefore, from a very trifling manufacture; but one in which the division of labour has been very often taken notice of, the trade of the pin-maker; a workman not educated to this business (which the division of labour has rendered a distinct trade), nor acquainted with the use of the machinery employed in it (to the invention of which the same division of labour has probably given occasion), could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty. But in the way in which this business is now carried on, not only the whole work is a peculiar trade, but it is divided into a number of branches, of which the greater part are likewise peculiar trades. One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving, the head; to make the head requires two or three distinct operations; to put it on is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper; and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which, in some manufactories, are all performed by distinct hands, though in others the same man will sometimes perform two or three of them. I have seen a small manufactory of this kind where ten men only were employed, and where some of them consequently performed two or three distinct operations. But though they were very poor, and therefore but indifferently accommodated with the necessary machinery, they could, when they exerted themselves, make among them about twelve pounds of pins in a day. There are in a pound upwards of four thousand pins of a middling size. Those ten persons, therefore, could make among them upwards of forty-eight thousand pins in a day. Each person, therefore, making a tenth part of forty-eight thousand pins, might be considered as making four thousand eight hundred pins in a day. But if they had all wrought separately and independently, and without any of them having been educated to this peculiar business, they certainly could not each of them have made twenty, perhaps not one pin in a day; that is, certainly, not the two hundred and fortieth, perhaps not the four thousand eight hundredth part of what they are at present capable of performing, in consequence of a proper division and combination of their different operations. Adam Smith, The Wealth of Nations, 1776.

Of a shuttered steel mill and a community organizer on Chicago's South Side:

I remember interviewing one man who ran a steel-straightening machine. It straightened steel bars or something. I said, well, what did you do? And he told me he pushed a button, and the rods came in, and he pushed a button and it straightened them, and he pushed a button and it sent them somewhere else. That's all he did. And he made big bucks doing it. Barack Obama, Dreams from my Father, 1995.

That passage led National Review's Byron York to comment three years ago, "That, of course, was one of the reasons the steel mill closed." Exactly. A mill somewhere else, probably in Japan, found a way to straighten the rods without a highly-paid button-pusher.

And twenty five years later, the community organizer is blaming automation for high unemployment, singling out ATM machines:

There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with a lot fewer workers. You see it when you go to a bank and you use an ATM, you don't go to a bank teller, or you go to the airport and you're using a kiosk instead of checking in at the gate.

Obama envisions an America where we all make "big bucks" doing menial work. Sounds dreamy, but it's just not economically feasible.

The current White House administration isn't economically feasible either. Which is why we're still awaiting Recovery Summer.

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