How do you settle disputes in the absence of a legal system? Or more bluntly, how do you get people to uphold their end of a deal without pointing a gun at their head?
The best answer I've found came from someone who named his avatar Judge Jude. His avatar and the project we were mutually involved in passed into the aether long ago, so I can't provide any references. I also haven't seen this idea anywhere else, but I only claim copyright for these words, if anyone wants to take the idea and implement it, please feel free.
There already is a mechanism for settling disputes without resorting directly to the legal system: arbitration. All the "judges" you see on television, whether they were judges previously, are technically acting as arbitrators. One feature of most arbitration is that the arbitrators only get involved after a dispute is arisen. This can make it a contentious and expensive process.
Judge Jude's innovation was to get involved before the contract was signed. His fee was a certain small percentage of the contract. (How small can be an area of competition between different arbitrators.) The contract wasn't binding until both parties and the arbitrator signed off on it. This makes for great incentives. The arbitrator has a huge incentive to make sure that everyone understands and agrees to exactly what they're getting into, so there won't be a dispute later on. The better he does this job, the more satisfied his clients will be, the better his reputation, and the more he can charge.
What if a dispute does come up, and someone does not want to comply with the arbitrator's decision? That person then gets blacklisted: the arbitrator will no longer adjudicate any disputes or sign off on any contracts for that person. If they do that several times, they will soon find no one wants to do business with them.
Settling disputes before they arise will be key to prosperity on the Long Ascent.
Showing posts with label Liberty. Show all posts
Showing posts with label Liberty. Show all posts
Friday, August 10, 2012
Friday, January 20, 2012
Lawn Nazis and Trash Fascists
Today I want to tell you a tale of two cities. Call one "S", for "stylish", and the other "R", for responsible. (The identities are hidden to protect the guilty.)
The residents of "S" are very concerned with outward appearances. In particular they want everyone to have impeccably groomed lawns. They have even gone so far as pass an ordinance that grass must be kept below 6 inches, and one of the town officials goes around in the spring with a ruler to make sure that people comply. Those who don't are given one warning and then face a $300 fine.
People living in "R" want to make sure we leave the planet in as good a condition as possible. They are very strict that people recycle everything they can. The refuse collectors are charged with watching the trash as gather it. People who fail to separate out recyclables get a note on their trash can warning them they could face a stiff fine.
Why does this matter? Because as long as these Lawn Nazis and Trash Fascists only hold power at a local level, you can choose whether you want to be stylish or responsible. If you find yourself in the wrong town, you can easily move to another more to your liking. Heck, you might even find a town, call it "SR", that has both, if that is what you want. Once they start taking over state or national governments, however, escaping them becomes much more costly.
Having as much local control as possible will help us navigate the Long Ascent.
The residents of "S" are very concerned with outward appearances. In particular they want everyone to have impeccably groomed lawns. They have even gone so far as pass an ordinance that grass must be kept below 6 inches, and one of the town officials goes around in the spring with a ruler to make sure that people comply. Those who don't are given one warning and then face a $300 fine.
People living in "R" want to make sure we leave the planet in as good a condition as possible. They are very strict that people recycle everything they can. The refuse collectors are charged with watching the trash as gather it. People who fail to separate out recyclables get a note on their trash can warning them they could face a stiff fine.
Why does this matter? Because as long as these Lawn Nazis and Trash Fascists only hold power at a local level, you can choose whether you want to be stylish or responsible. If you find yourself in the wrong town, you can easily move to another more to your liking. Heck, you might even find a town, call it "SR", that has both, if that is what you want. Once they start taking over state or national governments, however, escaping them becomes much more costly.
Having as much local control as possible will help us navigate the Long Ascent.
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