12 October 2008

11. Division of Labor - Keep It or Lose It

Capitalism and the ESTABLISHMENT of the Division of Labor.

Capitalism represents the emergence and establishment and incalculable benefits of an immense, peaceful, free-associating, voluntarily cooperative Division of Labor among tens of millions of free acting individuals in society (billions in a global economy), all acting peacefully together, in voluntary cooperation, in pursuit of each of their own mutual, individual self-interests - which is the perfectly moral (rational) thing to do. No masters, no slaves. All individuals and businesses, all trading together, each benefiting from the economic freedom of all other individuals and businesses – from the limitless applications of individual and economic freedom, and exercise of individual rights, including property rights. The result being that of indirectly helping all other individuals and businesses in achieving their own, individual self-interests, while pursuing one’s own self-interests.

Question: how did the United States’ economy get from where it was over 200 years ago to where it is today in 2008?

Answer: As pointed out by Dr. George Reisman in his book, Capitalism, it was amazingly simple. It was due to the total effect of millions of individuals, from one generation to the next over time, of each person working in their own individual self-interest. Again, the result being that of indirectly helping all other individuals, and the businesses that followed, in achieving their own individual self-interests.

-- In reference to this, see the complete text of the essay “Capitalism and the Economic History of the United States,” by Dr. George Reisman, from his book Capitalism: A Treatise on Economics, Part One, “The Foundations of Economics,” Chapter 1, “Economics and Capitalism,” Part B, “Capitalism,” Section 4, “Capitalism and the Economic History of the United States,” pp. 28-31, especially p. 29 (Jameson Books, 1998).

-- And for a full discussion about the Division of Labor and its relationship to Capitalism, refer to Dr. George Reisman’s book Capitalism, Part Two, “The Division of Labor and Capitalism,” pp. 123-500 (Jameson Books, 1998).

Statism and the DESTRUCTION of any Division of Labor replaced with Forced Labor.

Statism represents state (government or ruling group) regulated, mandated, and forced labor and the disbursement of labor. Reduced or no economic diversity. Restriction, or total elimination, of individual freedom, meaning the demise and destruction of economic freedom, meaning the destruction of economic progress, prosperity, expansion, and benefits to all individuals. Restriction and/or destruction of the economic process and ability of individuals everywhere to provide products and services to the greatest number possible of all other individuals and businesses. Destruction of the Division of Labor leads to “economic chaos” (Dr. George Reisman). Eventual devastation of the entire economic process ensues. Statism represents the impediment of serfdom and slavery.

For proof, observe the Dark Ages, the previous U.S.S.R. (the Union of Soviet Socialist Republics), including current day labor-controlled China, or worse, Cuba, Venezuela, North Korea, Iran, Zimbabwe, or the conditions of any other second- or third-world country under the rule of some form of Statist regime or brutal dictatorship.

On the positive side, observe the amazing expansion and development of freedom-oriented Division of Labor economies in various Southeast Asian countries, such as Japan and Taiwan (even to some small extent, in China) – all due to the introduction of limited, yet influential, freedom of economics, a growing division of labor, and limited property rights – all attributes of Capitalism, of course. Of course.

The interruption and destruction of the Division of Labor is due to the attributes of Statism (whether socialism, nationalism, Marxism, communism, environmentalism, etc.) – from the lack of economic freedom, individual freedom, individual rights, and property rights.

-- For a full and complete discussion about the tyrannical and destructive forces and chaos of statism (socialism) on the Division of Labor, refer to Dr. George Reisman’s book Capitalism, Chapter 8, “The Dependence of the Division of Labor on Capitalism IV: Socialism, Economic Chaos, and Totalitarian Dictatorship,” pp. 268-295 (Jameson Books, 1998).