The authors take the thesis that, prior to World War I, the world effectively lived in a state of globalization, which they term the "First Era of Globalization."

The authors define globalization as periods where free markets predominate, and countries place few if any limits on imports, exports, immigration and exchanges of information. Overall, they see globalization as a positive movement that improves the standard of living for all the people connected to it, from the richest to poorest.

According to the authors, the rise of fascism and communism, not to mention the Great Depression, nearly extinguished capitalism, which rapidly lost popularity.

After World War II, the authors believe the work of economist John Maynard Keynes came to be widely accepted in Western economies. Keynes believed in government regulation of the economy, and the authors underline this as Keynes' great influence and prestige. In the authors' opinion, these so-called "commanding heights" were often owned or severely regulated by governments in accordance with Keynes' ideas.

The authors then discuss how the political change of the 1980s ushered in a change of economic policy. The old trend changed when Margaret Thatcher became prime minister of the United Kingdom, and when Ronald Reagan was elected President of the United States. Both these leaders parted ways with Keynesian economics. Rather, they were more in the tradition of the work of Friedrich von Hayek, who opposed government regulation, tariffs, and other infringements on a pure free market, and Milton Friedman, who emphasized the futility of using inflationary monetary policies to influence rates of economic growth.

While Thatcher, Reagan, and their successors made sweeping reforms, the authors argue that the current era of globalization finally began around 1991, with the collapse of the Soviet Union. Since then, they argue, countries embracing free markets have prospered on the whole, while those adhering to central planning have failed.

While strongly in favor of this