Join        Login             Stock Quote

Chaos Or Orderly?

 January 31, 2013 12:18 AM

Chaos Theory by Robert Murphy really tests the limits of how open your mind is. The book forces the reader to think outside the box that is the years of conditioning that have shaped our beliefs in the necessity of organized government.

I've always been of the camp that government is a necessary evil. Evil because it consumes wealth by taking it from those who create wealth. But necessary because it is needed to guarantee property rights, without which building wealth in the long-term would be very difficult.

[Related -Automating Ourselves To Unemployment]

But Murphy imagines a world that guarantees property rights without government, and therefore without the 'evil'! In this world, various incentivised, competing companies take on the roles that are currently executed by governments, including its legislative (e.g. parties or groups of parties contract with each other with respect to what's 'legal', with insurance companies held liable in breaches), judicial (companies specializing in arbitration take on this task), and executive (liable insurance companies do what it takes to protect clients, including imprisoning those who are likely to harm others, and contracting military defense firms to protect clients from incursions from abroad) branches.

In other words, Murphy doesn't see chaos if government were to fall; he sees order. Order that is much more efficient than the system of monopolized government that currently rules us.

[Related -Fed: Waiting For June… Or Godot?]

It's possible that my mind isn't open enough, or that I am much more pessimistic than is Murphy, because I have a hard time envisioning such a scenario. History appears to suggest that any society that may have ascribed to such ideals has been short-lived, since none exist and examples are hard to come by. Some entity (mafia, foreign government etc) would likely seek to assume rule of such a society, and if history is any guide, abuses of power will reign. As such, it may be better to be ruled by the devil you know (a government that allows its citizens to be relatively free) than the devil you don't. Would an insurance company really protect its clients if a costly war were on the horizon? Or would it renege, by declaring bankruptcy with agents moving assets to safer jurisdictions?

While I can't fully envision the society Murphy paints, it is definitely worth the quick read for those interested in this topic. At the very least, it forces you to think about what you believe the government's role should be, and what areas it would be best to leave to the private sector. If you're mind is open enough, you might question what you have taken for granted as a result of years of conditioning.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.