The gated community example is a great way to show a variety of services that free market can and indeed does provide as we speak, relying on private contracts, competition between developers and economic incentives for entrepreneurs to come up with conveniences that no one else thought of before. This is important to show how a 100% private property society would function, when the “public property” is finally privatized - an event most people cannot even imagine. Well, they just have to look at gated communities and extrapolate it for the whole country. The thought experiment can go as far as imagining such a gated community contract to involve private security, abjudication services and insurance coverage to protect from liabilities in and outside the community - all subjected to market competition between various communities of that sort. This would spur a fountainhead of innovative entrepreneurship to provide consumers with the most convenient services just to keep them on long-term contracts with a given community.
Had history played out differently we could easily be finding ourselves asking, “How could private industry possibly provide quality Internet search? It’s so essential, surely the government must provide it.” Or social networking, Or Internet connectivity itself. Etc. etc.
3 Comments to “Yaron Answers: Don’t we need government to provide infrastructure?”
The gated community example is a great way to show a variety of services that free market can and indeed does provide as we speak, relying on private contracts, competition between developers and economic incentives for entrepreneurs to come up with conveniences that no one else thought of before. This is important to show how a 100% private property society would function, when the “public property” is finally privatized - an event most people cannot even imagine. Well, they just have to look at gated communities and extrapolate it for the whole country. The thought experiment can go as far as imagining such a gated community contract to involve private security, abjudication services and insurance coverage to protect from liabilities in and outside the community - all subjected to market competition between various communities of that sort. This would spur a fountainhead of innovative entrepreneurship to provide consumers with the most convenient services just to keep them on long-term contracts with a given community.
This is really excellent.
Had history played out differently we could easily be finding ourselves asking, “How could private industry possibly provide quality Internet search? It’s so essential, surely the government must provide it.” Or social networking, Or Internet connectivity itself. Etc. etc.