I’m no economist, but I think you’re making a few statements here based on nothing but the stuff you’ve read, which may or may not be sensible, but that you’re not really evaluating this properly—especially in the context of calling it a paradox.
I really think you should answer, or concede for now, the existing complaints we have so that you can move on or actually debate them.
However, I'm going to respond to this the best I can, since if this makes sense to me the way it does, then I think it's got some lack-of-thought involved. Stas is much more well-informed than I am, but it seems like one of the only criticisms you responded to was mine, where I said the contractual obligations would not be strong enough to insure that non-manufactured goods and services would be protected.
Rand's view of Art is pretty fucking distorted anyway, but whatever.
MartianHoplite wrote:There are, however, a number of paradoxes inherent in this point of view. How can a social contract arise within a stateless society if the contract dilemma prevents the creation of binding contracts in the absence of a state? How can the state arise from anarchy if it is thus its own necessary antecedent?
You’re assuming that a stateless society is inherently an anarchy, which I think is a false premise, as even communal groups practice government, regulation, and a degree of social welfare.
Most societies without a state devolve not into anarchy, but into a form of rule with a loose organization. For example, when a flood hits a neighborhood, people organize. It’s not anarchy; it’s a form of communal self government that would, given time, probably tend towards the structures we see now—with an Elder for dealing with legal issues, a rough court for the hearing of grievances, and so on. Inherent to this though is the idea that there’s the ability to compel one group to yield to another via an outside force. At the very least there is a social threat of becoming outcast from the group, which is a psychological threat as well as a very potent socioeconomic one.
I would say that true stateless societies, where there is no compelled social organization, are nearly a myth. It assumes people are free to leave—and freedom of movement was never feasible before relatively modern times where you became less dependant on groups for your own personal survival. If you’re not free to leave a group, you’re beholden to obey its systems. And thus a state is merely just a greater degree of organization among those who have already formed rule-based social groupings, with an agreed upon set of rules.
Libertarian anarchy, if it is possible, would only be possible in a relatively recent timeframe.
MartianHoplite wrote:Furthermore. If it is true that the enforcement of a contract requires compulsion from some agency not party to it, how can individuals, having entered into a "social-contract" with some agents charged with enforcing peace and harmony, hold the agents to their end of the social contract without resorting to a "meta-state", superior to both the state and its citizens, for enforcement. This would seem to lead to an infinite regress towards higher and higher levels of necessary meta-enforcement. In other words, who governs the government?
This again has a false premise. B can default on A, but if A has threatened to knock B’s teeth in, that can be an adequate degree of compulsion. However, I wouldn’t really consider than an answer to the question, but it is important to note that a threat of violence has often been a good ‘mitigating circumstance’ for defaulting onto a contract. And in collaborative industries, which you could view traditional agrarian type industries as, getting on the blacklist as a lousy worker is something that requires no more than B and one or two other sources to just talk amongst themselves. There’s a greater degree of complexity for the ability of one to compel another than the premise gives us credit for.
As for “Who watches the Watchmen,” that’s why government with checks and balances are so popular. If you assume that people will act in their own self interest, as most people do—Libertarian or not—then you structure the governing system in such a way that there are not only several levels of government (such as county, state, circuit… etc levels of Courts that allow you to appeal to a higher—and presumably more fairly disinterested authority) but that there are always going to be other people capable of weighing in on your favor if there is some breach of justice. It isn’t infinite regress. You just install enough capacity for regress that due process is observed, and assume that you do the best job you can in representing the law.
Clearly, if you think that hiring some nebulous ‘protection’ against a breach of contract is sufficient, you’ve never tried to take a company to court. If I work contractually for Microsoft, and they default on a contract in whole or in part, I’m basically fucked. I may want to fight back, but it’s like fighting the R.I.A.A. and you just don’t have enough money to do battle with a much more well-funded agency, especially when bringing an issue to court at all is going to cost me money, even outside of my additional retained legal fees. I’ve had a larger organization bone me and leave me high-and-dry, and unless I wanted to attempt to bring them to court on my meager savings, there’s not a damn thing I can do about it.
MartianHoplite wrote:Isn't it likely, then, that these agents to which we entrust the final say in the settlement of our social dilemmas are themselves rational entities, with their own interests that can sway them from the impartiality that their responsibility requires?
What evidence is there, a priori or empirical, to indicate that their self-interest leads them to seek fair and objective solutions to our dilemmas?
No. Unless the Judge was appointed by a corporate entity and gets his paychecks from the people you’re trying to bring to court, or you have insufficient oversight of the judicial proceedings (say, for example, no government) then by strict interpretation the Judge would be best served to do the best legal interpretation that he can. A governmental Judge, whose promotions and appointments are dependant on him properly doing his job as an impartial arbiter of the law, would be a far greater advocate than a company Judge.
It is only when you make his self-interest somehow come unfastened from his legal qualifications that this is problematic. And if you’re speaking less of judges and more of politicians, then the same applies. If someone’s well-being is attached to their quality of work then their efforts will work in your best interest as well.
Now, if the Judge is swayed somehow via a bribe, that would distort the process. But there’s no assumption of decreased corruption in a Libertarian system, and without sufficient oversight, I find it hard to escape the conclusion that there would be inherently more corruption—and that it would benefit directly those who have the most money to spend, or the largest organizational framework with which to launder their bribes.
MartianHoplite wrote:Might their own self-interest lead them, rather, to use their discretionary power to exploit their subjects for the achievement of some holistic end, or to exploit one group for the benefit of another?
Outside of corruption, which afflicts both systems but would have less inherent likelihood of occurrence in a climate of increased oversight and regulation, it would not only be difficult for someone to exceed the powers given to them or go outside their level of authority without compromising their position, but it would also not be technically very useful. Getting yourself fired just to do some biased rules-making, which would then be overturned, doesn’t seem logical or very self-interested.
MartianHoplite wrote:The equilibrium strategy of the subject population would be, in this case, not to resist but to obey, adjust and profit from the opportunities for coalition building with the rulers at the expense of the rest of society.
I’m not sure how a Libertarian system argues for anything else, except for the assumption that they have the ideal society envisioned and thus any obedience would be in their own best interest.
As wealth and power accumulates in the hands of a few who are able to employ others, right there the idea of a coalition sneaks back in, without the option of allying yourself to a more independent force. The government doesn’t pay me, and I also do have a voice in the government. When I work at a place, not only do I not get a vote in what is done, but they have complete control of me, down to the level of what I can discuss with my family, what I can wear, where I can live, and what to do on my own time.
Furthermore, without an independent population—a population independent from their source of need-fulfillment—you end up having extreme amounts of control that leads to greater degrees of control than you would have under a standard government. As someone already said, I’m reminded of the Company Towns of yesteryear, where people were paid in Company Script and it was only redeemable at the Company Store. If I work for ConGlommo, and I get CGBux that I can redeem for food and services at CGMart, my ability to exercise the kinds of freedom I would have under a standard government evaporate. Furthermore, I lose the ability to leave the situation for something superior unless there’s an exchange-rate for CGBux, which I would doubt, since CGCorp doesn’t export their goods for their own currency. You’re basically fucked again.
Yes, it’s certainly possible for market forces to encourage people to work for a more beneficial company, rather than the oppressive one that sucks, but this is assuming that you’re one of Galt’s Chosen, and not one of the poor Proles whose job it is to wash the floor. The fact is, we rarely see large companies move towards these trends on their own, nor do we see people openly attempting to oppose a stronger company outside of the presence of a larger authority.
This is a major issue. As with Coalitions between individuals, there’s no real reason for a company to not merge with another company if it would be beneficial to do so. How long can we assume for market forces to keep the rights of the individual at the forefront when anyone with money can make more money and live more safely by selling their company to ConGlommo (rather than be crushed by competition forces), especially when we see companies in this day and age already attempting to exercise monopolizing force, even with the existence of an ‘oppressive’ Government regulatory force? Why would they become MORE benevolent when freed of that oversight?
MartianHoplite wrote:Leslie Green argues in The Authority of the State (Oxford: Clarendon 1990) that this authority to provide public goods is itself a public good, and that it is more difficult to organize such authority than it is simply to provide lower order public goods outright (for example, as in the specific case of television broadcasts, how they're provided in America through advertising revenue.)
This makes no accounting for content. Part of the reason the UK has a greater degree of public discourse than the Americans do is because of these paid-for programs being far more available, and for doing their part to educate a populace. If you don’t believe me on that, ask Miss USA to look for America on the map again. If FOX news is any indication, market forces tend towards what is popular or desirable, not what is best or true. There are certain things which are not open to subjective interpretation, and which should not be subject to death from market pressure. There should always be pressure to make something profitable, but Public Broadcasting would cease to be a valuable service if it was forced to compete with daytime TV. If you want to debate the value of Public Broadcasting, open a new thread, as I’m sure that’s a slightly more controversial subject and you might not be the only person on your side.
MartianHoplite wrote:For the sake of argument, let's discard the assumption that a state is necessary to enforce contracts, and look at the situation where a contract is to be enforced by the opposing wills of those party to it.
Why should we discard that assumption? Do you have evidence that opposing wills is more fair, or more reasonable? In the case of an individual versus a corporation, how is a test of wills and assets a more fair system? In the case of a majority against a minority, how is there no requirement of a larger body to compel the minority? You can call it what you will, but even in a Libertarian society with laws and rules, it is not merely a contest of wills. Both parties need to submit to the authority of the other, otherwise no law is possible, and you’ve already stated that Libertarians do believe in law and justice. W contest of wills is not a decider of justice.
MartianHoplite wrote:However, if we factor in the possibility of future contracts into the picture, the situation changes markedly. A will now be willing to spend more than he expects to gain from the present contract in order to enforce it, if he thinks that by so doing he will be able to gain future benefit from the successful fulfilment of additional contracts with B. B, for his part, will be faced not only with a much greater threat of enforcement from A, but also higher opportunity costs for default; namely the loss of any benefits future contracts with A might bring.
I don’t think you’ve ever been in this situation yourself. If I write a book or compose a song or make an animation, and I want to sell it to someone, and I need to retain an Enforcement group to insure that, I’m still completely in their hands. If I refuse to submit to their demands, such as full contractual ownership of my stuff, a payment scheme on the receipt of 2 other works of similar quality, etc… then they can just tell me to walk away and call back if I change my mind.
This is the situation as-is, it wouldn’t change in Libertopia, except that I’m already paying for the protection of a service I hope to provide that I haven’t yet got an expectation of payment for. How am I supposed to pay for the protection of some legal authority if I don’t have any capital right now? Take my situation for example—out of college, fighting to get a job in artsy fields, and without copyright I’d be unable to show my work to an employer and be sure they wouldn’t just steal it. If I was trying to pay for an Enforcement package, I could quickly go bankrupt and be unable to barter anymore, thus forced into taking an incredibly shitty job offer and forced to sign a contract which works against me. Now the greater assets of B work against A, as if A wants to re-negotiate, they can’t and they’re stuck.
All you’ve done are remove a ‘free’ protection for standard business and added an unfair ‘tax’ onto the system due to your negligent oversight of potential abuse, which is further enflamed by the lack of certain other protections, such as intellectual property. By forcing me to pay extra just for the chance to actually develop some income, you’re abusing me directly. A lot of the stuff you see on TV, like advertisements for major brands, are done in extremely small houses staffed by no more than 20 or so people. They run on extremely tight budgets and work is usually not plentiful. Even the best ones can’t afford to take on further burdens, such as extra personal enforcement troupes, to compel other people to pay them. It’s a buyer’s market, not a seller’s.
Your situation works fine for Mercenary Companies and Huge Advertising Agencies, but it works poorly at the individual or small business level, where the most need of these essential protections is.
MartianHoplite wrote: Therefore, Axelrod reached the Utopian-sounding conclusion that selfish individuals for their own selfish good will tend to be nice and forgiving and non-envious. One of the most important conclusions of Axelrod's study of IPDs[Iterated Prisoner Dilemmas] is that Nice guys can finish first.
If only we were robots. This is clearly not the state in the real world. Given that his conclusion has no basis in the actual reality we all live and breathe in, I’m not sure how this is useful outside of a thought experiment or philosophical level. While it is absolutely true that nice, generous, forgiving people work better and perform better in a large-scale system than the converse, there’s no need for this to be done in a Libertarian context. Regardless of the system, niceness is useful, but there’s no incentive to be nice in a Libertarian Anarchy that does not exist in a State system, and there are several conclusions that Libertarian Anarchists make (such as the idea that needs are subjective) that decrease a social imperative to be nice, even those who are self-interested. Sadly, this is because people are stupid, and far more bound by Drama Theory than Game Theory.
Once you successfully edit envy, and therefore the idea of Capitalism, out of the human genome, this will have pertinence. Until then, the manufacture of needs and wants—which is envy at its most basic—will continue to drive people, and is the foundation of your Libertopia anyway? This is more a support of a strong Federal Republic, where everyone works together to achieve the most they can, or a Altruist Communism, where they act nice and seek their self interest through the interest of the whole, than it is of a system where competitive Self-Interest makes no assumption of cooperative social obligations towards your fellow man.