The division of labor is the fundamental principle our society is built upon today. It is the origin of welfare and the reason why capitalism succeeded over socialism. Property (this belongs to me and that belongs to you) and trade (give me what you have and I’ll give you what I have) are the reason for specialization and division of labor. Division of labor increases the output due to the increase of knowledge in the specialized field of activity, it decreases the time wasted changing from one occupation to another and from one workspace to another, and it increases the technological innovation as only through intense grappling of a problem can it be solved. However, this all means that one is dependent on other individuals, e.g. the smith cannot sustain his life without bartering his products for food, meaning if for some reason no farmer is any longer willing to sell his products, the smith will starve.

Therefore, the question arises if dependence is a necessity and will make you stronger. Take the capital of a company as an example. Although one would think that having a large equity makes you a stronger company, i.e. you are in a stronger position to demand actions from others, compared to a situation where you are reliable on the debt of others, where you are in a weaker position, it seems as taking debt is the better solution. Taking debt will make you dependent, but it will also increase your capacity to grow and operate, as debt is cheaper than equity. It is the art of sustaining these relations to the debtor, not the independence which is to be mastered, since, in the long run, you will be more productive, more successful and bigger, meaning you will be more powerful, if you work with debt, rather than equity. Therefore, dependence prevails over independence.

But then why did my parents raise me to be an independent individual?


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