The large gauge black wire on the center post is the high amperage power coming into the light switch from the fuse block, the small gauge black wire on that post is a jumper carrying power to the other side for the wiper switch. Smoke in this area says you have very high resistance either inside the switch or downstream in the wiring or at the lights. If you decide to open up the switch, I recommend you do so on a work bench topped with a soft towel. Tiny bits tend to bounce and run away on a hard surface - ask me how I know. Here's a pic of the small bits inside the switch box - rockers, tiny springs, and nylon "nubbins". You can see heavy carbon buildup on the rockers where they contact the posts on the circuit board. In the pic, one nubbin at the far right is actually melted from heat - it had to be replaced with one from a cannibalized switch.