[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.00,0:00:04.88,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,0:00:10.99,0:00:13.91,Default,,0000,0000,0000,,- [Don] The benefits\Nof voluntary trade are obvious.
Dialogue: 0,0:00:14.58,0:00:18.08,Default,,0000,0000,0000,,Suppose this guy has bananas\Nand this guy has oranges.
Dialogue: 0,0:00:18.63,0:00:21.79,Default,,0000,0000,0000,,He needs oranges for marmalade\Nand this guy needs bananas
Dialogue: 0,0:00:21.79,0:00:23.19,Default,,0000,0000,0000,,for banana bread.
Dialogue: 0,0:00:23.19,0:00:25.31,Default,,0000,0000,0000,,They swap -- they exchange.
Dialogue: 0,0:00:25.74,0:00:27.91,Default,,0000,0000,0000,,Each guy is made better off\Nthrough trade.
Dialogue: 0,0:00:28.68,0:00:31.11,Default,,0000,0000,0000,,In our last video, though,\Nwe saw that a key fact
Dialogue: 0,0:00:31.11,0:00:34.28,Default,,0000,0000,0000,,about the modern world\Ninvolves more than simple exchange.
Dialogue: 0,0:00:34.28,0:00:36.42,Default,,0000,0000,0000,,More than merely moving\Nexisting things around.
Dialogue: 0,0:00:36.99,0:00:40.30,Default,,0000,0000,0000,,We grew rich by also producing\Nmore stuff per person.
Dialogue: 0,0:00:40.76,0:00:42.100,Default,,0000,0000,0000,,Say you're cooking hamburgers\Nand fries for your family.
Dialogue: 0,0:00:43.33,0:00:45.34,Default,,0000,0000,0000,,It might take an hour\Nfor you to prepare the meal
Dialogue: 0,0:00:45.34,0:00:47.53,Default,,0000,0000,0000,,because you individually\Ndo everything.
Dialogue: 0,0:00:47.91,0:00:50.04,Default,,0000,0000,0000,,You start the grill,\Nyou cook burger,
Dialogue: 0,0:00:50.04,0:00:52.36,Default,,0000,0000,0000,,chop the fries,\Nslice the vegetables --
Dialogue: 0,0:00:52.36,0:00:53.92,Default,,0000,0000,0000,,on and on and on.
Dialogue: 0,0:00:53.92,0:00:56.43,Default,,0000,0000,0000,,Now look at how a burger joint\Nmakes hamburgers.
Dialogue: 0,0:00:56.93,0:00:59.81,Default,,0000,0000,0000,,Each worker has a specific job\Nin the chain of production
Dialogue: 0,0:00:59.81,0:01:02.16,Default,,0000,0000,0000,,that serves burgers and fries\Nto its customers.
Dialogue: 0,0:01:02.16,0:01:04.16,Default,,0000,0000,0000,,Each worker is specialized.
Dialogue: 0,0:01:04.79,0:01:06.82,Default,,0000,0000,0000,,This specialization,\Nwhat Adam Smith called
Dialogue: 0,0:01:06.82,0:01:09.57,Default,,0000,0000,0000,,the division of labor,\Nmakes individual workers
Dialogue: 0,0:01:09.57,0:01:11.06,Default,,0000,0000,0000,,more productive.
Dialogue: 0,0:01:11.06,0:01:13.92,Default,,0000,0000,0000,,No more lost time\Nswitching between tasks.
Dialogue: 0,0:01:13.92,0:01:16.88,Default,,0000,0000,0000,,Plus as a worker concentrates\Nhis effort, he gets better
Dialogue: 0,0:01:16.88,0:01:19.01,Default,,0000,0000,0000,,at doing the task at hand.
Dialogue: 0,0:01:19.91,0:01:21.88,Default,,0000,0000,0000,,But it's not just\Nthe specialization of workers
Dialogue: 0,0:01:21.88,0:01:23.58,Default,,0000,0000,0000,,that increases output.
Dialogue: 0,0:01:23.58,0:01:26.04,Default,,0000,0000,0000,,It's also the development\Nof specialized tools
Dialogue: 0,0:01:26.04,0:01:27.83,Default,,0000,0000,0000,,that modern workers use.
Dialogue: 0,0:01:27.83,0:01:30.77,Default,,0000,0000,0000,,The burger joint has tools\Nto slice potatoes, to cook burgers,
Dialogue: 0,0:01:30.77,0:01:32.73,Default,,0000,0000,0000,,and to fry the fries.
Dialogue: 0,0:01:32.73,0:01:35.07,Default,,0000,0000,0000,,That's just Specialization 101.
Dialogue: 0,0:01:35.86,0:01:38.07,Default,,0000,0000,0000,,I'm sure you've seen\None of these around.
Dialogue: 0,0:01:38.07,0:01:40.60,Default,,0000,0000,0000,,The container: they're everywhere!
Dialogue: 0,0:01:40.60,0:01:43.90,Default,,0000,0000,0000,,Cargo transported by ship\Nused to be stored in barrels,
Dialogue: 0,0:01:43.90,0:01:47.17,Default,,0000,0000,0000,,in sacks, in wooden crates,\Nand off-loaded by hand.
Dialogue: 0,0:01:47.48,0:01:49.57,Default,,0000,0000,0000,,The invention of the container,\Nthough, created more
Dialogue: 0,0:01:49.57,0:01:51.90,Default,,0000,0000,0000,,than just a metal box\Nto put stuff in.
Dialogue: 0,0:01:51.90,0:01:54.40,Default,,0000,0000,0000,,With it came a wave\Nof specialized technology
Dialogue: 0,0:01:54.40,0:01:56.69,Default,,0000,0000,0000,,that dramatically increased\Nthe productivity of shipping
Dialogue: 0,0:01:56.69,0:01:58.22,Default,,0000,0000,0000,,and offloading.
Dialogue: 0,0:01:58.22,0:02:01.34,Default,,0000,0000,0000,,Ships themselves evolved,\Ndwarfing their predecessors
Dialogue: 0,0:02:01.34,0:02:02.86,Default,,0000,0000,0000,,with the ability\Nto stack containers
Dialogue: 0,0:02:02.86,0:02:04.48,Default,,0000,0000,0000,,below and on the deck.
Dialogue: 0,0:02:05.20,0:02:08.05,Default,,0000,0000,0000,,Ports changed too,\Ndredging deep waters
Dialogue: 0,0:02:08.05,0:02:11.00,Default,,0000,0000,0000,,and providing specialized pilots\Nand gantry cranes
Dialogue: 0,0:02:11.00,0:02:13.37,Default,,0000,0000,0000,,to quickly park and unload ships.
Dialogue: 0,0:02:13.37,0:02:16.92,Default,,0000,0000,0000,,Driverless yard tractors\Nmagically whisk containers away.
Dialogue: 0,0:02:16.92,0:02:19.05,Default,,0000,0000,0000,,The containers are put\Non trucks and trains
Dialogue: 0,0:02:19.05,0:02:20.99,Default,,0000,0000,0000,,built specifically to hold them.
Dialogue: 0,0:02:21.40,0:02:24.10,Default,,0000,0000,0000,,Workers today are superhuman\Ncompared to their brethren
Dialogue: 0,0:02:24.10,0:02:25.40,Default,,0000,0000,0000,,of yesteryear.
Dialogue: 0,0:02:25.40,0:02:27.74,Default,,0000,0000,0000,,We went from carrying bags\Non our backs
Dialogue: 0,0:02:27.74,0:02:30.24,Default,,0000,0000,0000,,to lifting the equivalent\Nof two school buses
Dialogue: 0,0:02:30.24,0:02:32.40,Default,,0000,0000,0000,,with mere flicks of our wrists.
Dialogue: 0,0:02:33.20,0:02:37.44,Default,,0000,0000,0000,,To make specialization worthwhile,\Nyou need to make a lot stuff.
Dialogue: 0,0:02:37.99,0:02:40.71,Default,,0000,0000,0000,,For example, there is no point\Nspecializing in hamburgers
Dialogue: 0,0:02:40.71,0:02:43.10,Default,,0000,0000,0000,,if you plan to cook\Nonly one burger a week,
Dialogue: 0,0:02:43.68,0:02:46.91,Default,,0000,0000,0000,,or buying a forklift or crane\Nsimply to unload weekly groceries
Dialogue: 0,0:02:46.91,0:02:48.54,Default,,0000,0000,0000,,from the family car.
Dialogue: 0,0:02:48.54,0:02:51.80,Default,,0000,0000,0000,,Trade provides a market\Nbig enough to make it worthwhile
Dialogue: 0,0:02:51.80,0:02:55.59,Default,,0000,0000,0000,,to invest in specialization\Nand the bigger the market,
Dialogue: 0,0:02:55.59,0:02:59.11,Default,,0000,0000,0000,,the more we specialize, and hence,\Nthe more we can produce.
Dialogue: 0,0:02:59.91,0:03:01.69,Default,,0000,0000,0000,,Specialization doesn't stop there.
Dialogue: 0,0:03:01.91,0:03:04.25,Default,,0000,0000,0000,,In our next video, we'll explore\Nthe specialization
Dialogue: 0,0:03:04.25,0:03:07.96,Default,,0000,0000,0000,,of the most productive engine\Nknown to humankind: The human mind.
Dialogue: 0,0:03:08.98,0:03:10.87,Default,,0000,0000,0000,,What about the videos after that?
Dialogue: 0,0:03:10.87,0:03:12.42,Default,,0000,0000,0000,,Well, you decide.
Dialogue: 0,0:03:12.42,0:03:14.66,Default,,0000,0000,0000,,You tell us what topics\Nwe should cover.
Dialogue: 0,0:03:14.66,0:03:17.78,Default,,0000,0000,0000,,Here's the current leader board\Nof questions from our viewers.
Dialogue: 0,0:03:17.78,0:03:22.96,Default,,0000,0000,0000,,♪ [music] ♪