The key to understanding how society comes to be, works without central direction, and develops into a thriving civilization can be understood through the least understood idea in economics: the division of labor through comparative advantage. It is central to not only Mises’s conception of the social order but also to the entire classical-liberal worldview.
This monograph by Manuel Ayau provides what might be the most precise and compelling idea in the history of economic writing. He explains how trade and cooperation becomes mutually beneficial to all parties despite differences among them in terms of capacity and talent. He shows how everyone is made wealthier through cooperation, and how it is that the market economy leads to the benefit of everyone.
If this idea of what Mises called the Law of Association were better understood, many socialistic misconceptions about the market economy would fall by the wayside. Ayau explains it through simple diagrams and illustrations that will change the way you think. about issues of trade, equality, and social development.
Also, if you are already a “convert” on this issue of comparative advantage, this monograph makes an outstanding book to hand out to others. The excitement of the author and the persuasiveness of the author makes this an excellent tract for spreading the wisdom offered by economic science.
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Universidad Francisco Marroquin, 2007
