This necessity for creating a surplus made it inevitable that a “division of labor” would occur and develop.

The most skillful person, if he or she concentrated in the area of his specialty,  will be able to produce more of that item or service, than if he or she attempts to be a “jack of all trades”, and provide themselves for all the various items that they need or want.

Greater surpluses of all kinds ensue when everyone specializes according to their interests and talents, rather than when each person attempts to produce each and every thing he or she needs or wants.

Even in the days when mankind lived a largely hunting and foraging existence, man developed the idea of creating a surplus, and then exchanging their surplus for the surpluses of others.

Hunters for example would hunt, while others would skin the carcasses, preserve the hides, cook the meat, and make the weapons, clothing, and shelter.  Some might gather the firewood and edible plants from the forest, while others might learn to cultivate, harvest, and store crops for the lean season.  Each could trade with others the surpluses of his own labors, for the surpluses created by others that he needed or wanted.

To summarize:

• Production is more than hunting and foraging, for it includes the element of conversion of natural resources to human wants and needs;
• Production tends to create surpluses, because of the nature of man;
• Division of labor helps to produce surpluses;
• Surpluses make possible the exchange of goods and services.  The more surpluses that we have, the larger our exchange operations can be, the larger the quantity and variety of goods and services will be available, and the higher the standard of living that becomes possible.

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