My wife says I’m not very handy. I’m just as handy as the rest of the world. I have two hands. I just don’t know how to use them for much more than typing or lifting a coffee mug. But I also believe my lack of handiness is because I’ve never owned a home. Most people pick up these skills working on their own houses. I can hang a picture, build furniture, and naturally dominate a Philips screwdriver. But I suspect that once I do own my own home I’ll probably pick up some more skills.

But most things I cannot do. And most things you cannot do. You probably aren’t going to redo the roof on your house. You don’t have a clue how to knock down a wall to open up the downstairs. If the commode stops working and the plunger and Drano don’t work, you’re calling the plumber. Likewise, you pay someone to work on your car because you either don’t know how to or you’d rather have a professional do it. One of the pillars of frugalism is doing things yourself to save money. Don’t hire a maid, don’t go out to eat, don’t pay someone to do your yard. Do it yourself and save money.

Whatever.

I say outsource everything you can possibly afford to outsource and focus on making your own money. It’s not only good for you, it’s good for the world economy. It’s called “comparative advantage” and it’s why you aren’t a plumber.

Let’s say you’re a blogger and are capable of writing 1 post per hour or answering 10 emails per hour. Your hire an assistant capable of writing 1/2 posts per hour or answering 15 emails per hour. Left to your own devices and splitting your time, the two of you would write 6 posts and answer 100 emails per 8 hour day together. But, if each of you specialize, you can get more done. If you spend your entire day writing and the assistant spends the whole day emailing, you get 8 posts and 120 emails. Specialization allows each of you to be more productive by working on your strengths.

In other words, focus on what you’re good at, and pay people to do what you aren’t good at for you. Comparative advantage goes beyond the basic person to person synergies. It’s the entire nature of our economy today. It’s why every doctor in the world doesn’t dabble in each specialization. It’s why Kobe Bryant probably doesn’t mow his own lawn. It’s why I don’t change my own oil (even though I know how), and it’s why you aren’t a plumber

Economists like to make “assumptions”. In the strictest sense, comparative advantage assumes that you can always go be productive in your specialty. Look back at the blogger example. Maybe you only need to write 4 posts per day. If you do more you receive diminishing returns (in other words it’s not worth your time to do more than 4). So you could spend the rest of your day answering emails and not need the assistant. Said differently, if you have spare time, comparative advantage may not work for you.

Some people have the time or the motivation to do things other people would outsource. I know plenty of guys that just like to change their car’s oil. But I also know people too busy to mow their own grass. So you have to decide what aspects of your life are worth outsourcing in the name of comparative advantage. Personally, I hope make it possible that I’m so productive I have to outsource just about everything. Said differently, I want to just work and blog and pay people to do everything else for me.

If you’re interested in learning more about comparative advantage and its implications/applications on the world stage, check out the hottest economist on the planet and her two-part video on the subject.

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  By The Weakonomist 		The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice.

categories: economics, jobs