Market Principles? by Noam Chomsky

Take the US. In 1750… it was one of the richest societies on earth, but it was, of course, pre-industrial. If it had pursued its comparative advantage in accordance with market principles, it would now be exporting fish, fur, agricultural products, etc.

Instead, it industrialized, but not by adherence to market principles. Rather, by radical violation of these principles consciously undertaken to change its comparative advantage (otherwise known as development). Did it participate in “globalization”? Sure. Cotton in the early period of industrialization was rather like oil today, and the US was the major cotton exporter, thanks to extermination or expulsion of the native population and slavery—not exactly in accord with market principles, but perhaps the world’s leading illustration of “globalization.”