Friday, August 7, 2009

Anarchy and Development: An Application of the Theory of Second Best

Anarchy and Development: An Application of the Theory of Second Best

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1 comment:

Brad said...

The article states a truth, seemingly without realizing it:

"Many predatory governments do more to damage their citizens' welfare than to enhance it."

Franz Oppenheimer made a sharp distinction between the "economic" or "productive" means and the "political" or "predatory" means for man in achieving ends. The productive means employs freedom and free markets to the benefit of all, while the predatory means ultimately impoverishes all it touches, even those who employ it. According to Oppenheimer, the distinctive element that characterizes the predatory system is forcible appropriation; synonymous in his mind were robbery and taxation.

I am curious as to why the author doesn't seem to realize that any government that uses force to achieve its ends is a predatory government, or that ALL predatory governments do more to damage their citizens' welfare than to enhance it.

I have to disagree with his premise. I don't believe that Anarchy is a second best.