Globalization, writes George Reisman, is the process of bringing the entire world into the system of division of labor and thus into the system of social cooperation, of which division of labor is the essence. Its completion will mark the highest level of division of labor and social cooperation that it is possible for human beings to achieve, given the size of the world’s population.
In conjunction with its essential prerequisite of respect for private property rights, and thus the existence of substantial economic freedom in the various individual countries, its potential is nothing less than the elevation of the productivity of labor and of living standards all across the globe to the level of the most advanced countries, and at the same time the radical improvement in productivity and living standards in what are today the most advanced countries.
My analysis is inspired by the writings of my great teacher, Ludwig von Mises, who recognized the growth or decline of the division of labor as synonymous with the growth or decline of the foundations of economic progress and of society itself. FULL ARTICLE