jacbot Posted July 12, 2014 Posted July 12, 2014 This is forked from another discussion, because it deserves its own thread. Principal Agent theory applied to the organisation of the State. This is a talk from Michael Rozeff at the Lugwig von Mises Institute's annual Austrian Scholars Conference held at the Mises Institute in Auburn, Alabama; March 16-18, 2006. https://www.youtube.com/watch?v=xIE74SD0wTA
labmath2 Posted July 13, 2014 Posted July 13, 2014 Most of his arguments are distinctions without differences. All the things that are true for the state could be true for any other organization (corporation). The difference is in the capital. There is competition now (multiple countries) and there will always be cost of changing organization. To me the closest analogy to government is landlord and tenant. If the tenant dislikes his/her landlord, he can certainly object and even try to persuade the landlord, but he/she can also find a new place. The reality is that most of us do not want to move unless something really bad happens. As long as government as an organization can pass all organizational cost back on the citizens and there is imperfect information, voting and checks and balances and all other systems to prevent abuse is all just a ruse.
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