Division of Labor
Division of labor or
specialization is a cooperative
arrangement intended to increase the
productivity of labor. People specialize in professions and become more
and more productive, thus creating genuine wealth. Instead of doing everything themselves, people
exchange their goods and services with others to expand their range of
- No man is an island; man cannot survive without trading with others.
- We all need each other to ensure our well-being.
- Voluntary exchange is the driving force for social cooperation.
- Free trade is the driving essence of civilization.
"The greater productivity of work under the division of labor is a
unifying influence. It leads men to regard each other as comrades in a joint
struggle for welfare, rather than as competitors in a struggle for
existence. It makes friends out of enemies, peace out of war, society out of
Ludwig von Mises,
Chapter 18 (Society and Social Evolution).