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In Smith's logic, it could not be. The very first topic Smith takes up is the division of labor.
Smith argues that increasing the division of labor increases productivity. In one of the most famous passages in the book, Smith illustrates this tendency by a description of work in a pin factory:
Like modern economists, Smith believed that the standard of living (the Wealth of a Nation) could rise only if the productivity of labor would rise. For Smith, the most important force leading to a rising standard of living was division of labor.
What most people associate with Adam Smith is the idea of the "invisible hand;" the idea, that is, that free markets restrain prices to some "natural" level and assure the supply of goods and services at the "natural" price...
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