State Vs. Private Law - A Story

JakeStratham

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Oct 28, 2009
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Comments made by guerilla, here and in private, prompted me to dig up a fantastic essay by John Hasnas titled, "The Myth of The Rule of Law."

In his essay, Hasnas tells a fictional story. He uses it to prod the reader to consider whether law should remain a state monopoly. Most folks are fine with the market providing cell phones, pizza, cars, and countless other products, but stumble intellectually when it comes to law (and similarly, to defense).

I've pasted the entire story below. It's a fun read, and might spur you to consider this matter in a different light. You'll note I'm staying away from the broad topic of anarchism. (For that discussion, go here.) Instead, I'm focusing on the provision of law.

Without further ado...

---- Begin Hasnas ----

A long time ago in a galaxy far away, there existed a parallel Earth that contained a nation called Monosizea. Monosizea was remarkably similar to the present-day United States. It had the same level of technological development, the same social problems, and was governed by the same type of common law legal system. In fact, Monosizea had a federal constitution that was identical to that of the United States in all respects except one. However, that distinction was quite an odd one. For some reason lost to history, the Monosizean founding fathers had included a provision in the constitution that required all shoes manufactured or imported into Monosizea to be the same size. The particular size could be determined by Congress, but whatever size was selected represented the only size shoe permitted in the country.

As you may imagine, in Monosizea, shoe size was a serious political issue. Although there were a few radical fringe groups which argued for either extremely small or extremely large sizes, Monosizea was essentially a two-party system with most of the electorate divided between the Liberal Democratic party and the Conservative Republican party. The Liberal Democratic position on shoe size was that social justice demanded the legal size to be a large size such as a nine or ten. They presented the egalitarian argument that everyone should have equal access to shoes, and that this could only be achieved by legislating a large shoe size. After all, people with small feet could still use shoes that were too large (even if they did have to stuff some newspaper into them), but people with large feet would be completely disenfranchised if the legal size was a small one. Interestingly, the Liberal Democratic party contained a larger than average number of people who were tall. The Conservative Republican position on shoe size was that respect for family values and the traditional role of government required that the legal size be a small size such as a four or five. They presented the moralistic argument that society's obligation to the next generation and government's duty to protect the weak demanded that the legal size be set so that children could have adequate footwear. They contended that children needed reasonably well- fitting shoes while they were in their formative years and their feet were tender. Later, when they were adults and their feet were fully developed, they would be able to cope with the rigors of barefoot life. Interestingly, the Conservative Republican party contained a larger than average number of people who were short.

Every two years as congressional elections approached, and especially when this corresponded with a presidential election, the rhetoric over the shoe size issue heated up. The Liberal Democrats would accuse the Conservative Republicans of being under the control of the fundamentalist Christians and of intolerantly attempting to impose their religious values on society. The Conservative Republicans would accuse the Liberal Democrats of being misguided, bleeding-heart do-gooders who were either the dupes of the socialists or socialists themselves. However, after the elections, the shoe size legislation actually hammered out by the President and Congress always seemed to set the legal shoe size close to a seven, which was the average foot size in Monosizea. Further, this legislation always defined the size in broad terms so that it might encompass a size or two on either side, and authorized the manufacture of shoes made of extremely flexible materials that could stretch or contract as necessary. For this reason, most averaged-sized Monosizeans, who were predominantly politically moderate, had acceptable footwear.

This state of affairs seemed quite natural to everyone in Monosizea except a boy named Socrates. Socrates was a pensive, shy young man who, when not reading a book, was often lost in thought. His contemplative nature caused his parents to think of him as a dreamer, his schoolmates to think of him as a nerd, and everyone else to think of him as a bit odd. One day, after learning about the Monosizean Constitution in school and listening to his parents discuss the latest public opinion poll on the shoe size issue, Socrates approached his parents and said:

I have an idea. Why don't we amend the constitution to permit shoemakers to manufacture and sell more than one size shoe. Then everyone could have shoes that fit and we wouldn't have to argue about what the legal shoe size should be anymore.​

Socrates' parents found his naive idealism amusing and were proud that their son was so imaginative. For this reason, they tried to show him that his idea was a silly one in a way that would not discourage him from future creative thinking. Thus, Socrates' father said:

That's a very interesting idea, son, but it's simply not practical. There's always been only one size shoe in Monosizea, so that's just the way things have to be. People are used to living this way, and you can't fight city hall. I'm afraid your idea is just too radical.​

---- story continued in the following post ----
 


---- story continued ----

Although Socrates eventually dropped the subject with his parents, he was never satisfied with their response. During his teenage years, he became more interested in politics and decided to take his idea to the Liberal Democrats. He thought that because they believed all citizens were entitled to adequate footwear, they would surely see the value of his proposal. However, although they seemed to listen with interest and thanked him for his input, they were not impressed with his idea. As the leader of the local party explained:

Your idea is fine in theory, but it will never work in practice. If manufacturers could make whatever size shoes they wanted, consumers would be at the mercy of unscrupulous business people. Each manufacturer would set up his or her own scale of sizes and consumers would have no way of determining what their foot size truly was. In such a case, profit-hungry shoe sales people could easily trick the unwary consumer into buying the wrong size. Without the government setting the size, there would be no guarantee that any shoe was really the size it purported to be. We simply cannot abandon the public to the vicissitudes of an unregulated market in shoes.​

To Socrates' protests that people didn't seem to be exploited in other clothing markets and that the shoes manufactured under the present system didn't really fit very well anyway, the party leader responded:

The shoe market is unique. Adequate shoes are absolutely essential to public welfare. Therefore, the ordinary laws of supply and demand cannot be relied upon. And even if we could somehow get around the practical problems, your idea is simply not politically feasible. To make any progress, we must focus on what can actually be accomplished in the current political climate. If we begin advocating radical constitutional changes, we'll be routed in the next election.​

Disillusioned by this response, Socrates approached the Conservative Republicans with his idea, explaining that if shoes could be manufactured in any size, all children could be provided with the well-fitting shoes they needed. However, the Conservative Republicans were even less receptive than the Liberal Democrats had been. The leader of their local party responded quite contemptuously, saying:

Look, Monosizea is the greatest, freest country on the face of the planet, and it's respect for our traditional values that has made it that way. Our constitution is based on these values, and it has served us well for the past 200 years. Who are you to question the wisdom of the founding fathers? If you don't like it in this country, why don't you just leave?​

Somewhat taken aback, Socrates explained that he respected the Monosizean Constitution as much as they did, but that did not mean it could not be improved. Even the founding fathers included a process by which it could be amended. However, this did nothing to ameliorate the party leader's disdain. He responded:

It's one thing to propose amending the constitution; it's another to undermine it entirely. Doing away with the shoe size provision would rend the very fabric of our society. If people could make whatever size shoes they wanted whenever they wanted, there would be no way to maintain order in the industry. What you're proposing is not liberty, it's license. Were we to adopt your proposal, we would be abandoning the rule of law itself. Can't you see that what you are advocating is not freedom, but anarchy?​

After this experience, Socrates came to realize that there was no place for him in the political realm. As a result, he went off to college where he took up the study of philosophy. Eventually, he got a Ph.D., became a philosophy professor, and was never heard from again.

So, what is the point of this outlandish parable? I stated at the beginning of this section that as long as the law remains a state monopoly, there will always be a political struggle for its control. This sounds like a cynical conclusion because we naturally assume that the law is necessarily the province of the state. Just as the Monosizeans could not conceive of a world in which shoe size was not set by the government, we cannot conceive of one in which law is not provided exclusively by it. But what if we are wrong? What if, just as Monosizea could eliminate the politics of shoe size by allowing individuals to produce and buy whatever size shoes they pleased, we could eliminate the politics of law by allowing individuals to adopt whatever rules of behavior best fit their needs? What if law is not a unique product that must be supplied on a one-size-fits-all basis by the state, but one which could be adequately supplied by the ordinary play of market forces? What if we were to try Socrates' solution and end the monopoly of law?

---- End Hasnas ----

This story had a lot of details that made me chuckle, from the Red-versus-Blue shell game to the public's willful submission to false rulers. But most of all, I love that Hasnas sculpted a silly tale that makes folks think about whether law needs to remain a state monopoly.

That's it. I'll leave a couple of items below for those of you who want to dig deeper. Otherwise, have a good night.

You'll find several resources in this thread.

And a little bit of Hoppe never hurt anyone:


[ame=http://www.youtube.com/watch?v=WUL764U5-h4]State or Private Law Society? | Hans-Hermann Hoppe - YouTube[/ame]


(Hoppe's speech in text form.)
 
He was never heard from again because he was caught wearing size 5's. He was importing black market shoes and was clearly an enemy of the state and a threat to society. I say hang 'em, so the hardworking tax-payers of Monosiza don't have to support him in prison with their hard earned tax dollars. Treasonous bastard.
 
That was quite the read but definitely well worth it. Thanks!

Here are a few gems I picked up from it:

If human beings had the wisdom and knowledge-generating capacity to be able to describe how a free market would work, that would be the strongest possible argument for central planning.
In fact, a careful study of Anglo-American legal history will demonstrate that almost all of the law which facilitates peaceful human interaction arose in this way [a free market]. On the other hand, the source of the law which produces oppression and social division is almost always the state. Measures that impose religious or racial intolerance, economic exploitation, one group's idea of "fairness," or another's of "community" or "family" values virtually always originate in legislation, the law consciously made by the central government. If the purpose of the law really is to bring order to human existence, then it is fair to say that the law actually made by the state is precisely the law that does not work.
The fact is that there is no such thing as a government of law and not people. The law is an amalgam of contradictory rules and counter-rules expressed in inherently vague language that can yield a legitimate legal argument for any desired conclusion. For this reason, as long as the law remains a state monopoly, it will always reflect the political ideology of those invested with decisionmaking power.
A lot of common sense stuff which is unfortunately uncommon these days.
 
An awesome read. Jake strikes again.

Unfortunately, I don't think a society could ever exist inbetween Anarchy and one where the state monopolizes the law... The 'leaders' would always insist on monopolizing the law because it is their best tool for control...

And it can't possibly be wrested away from them using lawful tactics... Because it's their law!

Facsinating to think of though, nonetheless.
 
Can someone do an ELI5 (explain like I'm five) for this ?
Once something becomes politicized, people accept it as always being an issue handled by the state, and cannot perceive a different way to do things.

That is why (1) we don't want anything (or many things) politicized, and (2) law, despite supposedly being a state function, isn't. Most people just refuse to apply the same rules they apply to shoes, education, food, software etc to the provision of law.

Man's belief in objective laws is demonstrably false because every region has different laws, and different regional laws find ways to resolve peacefully. If this can be done at the nation state level, there doesn't seem to be a good reason why this can't be done at lower levels.

As an aside, making more laws doesn't make man good. On the contrary, it just makes more men criminals. Morality != law. The basic moral laws (do not harm others, do not steal - derived from property rights) should be sufficient, and indeed are present, in every common law system.
 
He was never heard from again because he was caught wearing size 5's. He was importing black market shoes and was clearly an enemy of the state and a threat to society. I say hang 'em, so the hardworking tax-payers of Monosiza don't have to support him in prison with their hard earned tax dollars. Treasonous bastard.

Haha. Scary to think there are a few folks here who might make the same proposal with a straight face.


Thanks for that Jake I thoroughly enjoyed that!

If you haven't already done so, I encourage you to print the essay and read it in its entirety. I've read it several times, and plan to read it periodically over time.


That was quite the read but definitely well worth it. Thanks!

Here are a few gems I picked up from it:

A lot of common sense stuff which is unfortunately uncommon these days.

Hasnas did a great job with this essay. It's filled with simple insights, including the following passage:

So, what would a free market in legal services be like? As Sherlock Holmes would regularly say to the good doctor, "You see, Watson, but you do not observe." Examples of non-state law are all around us. Consider labor-management collective bargaining agreements. In addition to setting wage rates, such agreements typically determine both the work rules the parties must abide by and the grievance procedures they must follow to resolve disputes. In essence, such contracts create the substantive law of the workplace as well as the workplace judiciary. A similar situation exists with regard to homeowner agreements, which create both the rules and dispute settlement procedures within a condominium or housing development, i.e., the law and judicial procedure of the residential community. Perhaps a better example is supplied by universities. These institutions create their own codes of conduct for both students and faculty that cover everything from academic dishonesty to what constitutes acceptable speech and dating behavior. In addition, they not only devise their own elaborate judicial procedures to deal with violations of these codes, but typically supply their own campus police forces as well. A final example may be supplied by the many commercial enterprises that voluntarily opt out of the state judicial system by writing clauses in their contracts that require disputes to be settled through binding arbitration or mediation rather than through a lawsuit. In this vein, the variegated "legal" procedures that have recently been assigned the sobriquet of Alternative Dispute Resolution (ADR) do a good job of suggesting what a free market in legal service might be like.

... and...

The problem with trying to specify the individuated "legal systems" which would develop is that there is no limit to the number of dimensions along which individuals may choose to order their lives, and hence no limit to the number of overlapping sets of rules and dispute resolution procedures to which they may subscribe. An individual might settle his or her disputes with neighbors according to voluntarily adopted homeowner association rules and procedures, with co-workers according to the rules and procedures described in a collective bargaining agreement, with members of his or her religious congregation according to scriptural law and tribunal, with other drivers according to the processes agreed to in his or her automobile insurance contract, and with total strangers by selecting a dispute resolution company from the yellow pages of the phone book. Given the current thinking about racial and sexual identity, it seems likely that many disputes among members of the same minority group or among women would be brought to "niche" dispute resolution companies composed predominantly of members of the relevant group, who would use their specialized knowledge of group "culture" to devise superior rules and procedures for intra-group dispute resolution.

There's a lot to ponder here. :)


An awesome read.

Glad you read it. And if you haven't gone through Hasnas's entire essay, get on it. ;)


Cool story bro, in a non-sarcastic way :)

More to the point, it's an allegory. Hope you found it insightful.


I originally wanted to say TL;DR. I save it for later reading.

I will make you a deal. I promise to avoid using violence to compel you to read it, and you promise to read it if you find the time and think it will improve your life. Contrary to the cynicism some folks harbor about man's nature, I am happy to negotiate peacefully.


Can someone do an ELI5 (explain like I'm five) for this ?

guerilla is on the case...


Once something becomes politicized, people accept it as always being an issue handled by the state, and cannot perceive a different way to do things.

That is why (1) we don't want anything (or many things) politicized, and (2) law, despite supposedly being a state function, isn't. Most people just refuse to apply the same rules they apply to shoes, education, food, software etc to the provision of law.

Man's belief in objective laws is demonstrably false because every region has different laws, and different regional laws find ways to resolve peacefully. If this can be done at the nation state level, there doesn't seem to be a good reason why this can't be done at lower levels.

As an aside, making more laws doesn't make man good. On the contrary, it just makes more men criminals. Morality != law. The basic moral laws (do not harm others, do not steal - derived from property rights) should be sufficient, and indeed are present, in every common law system.

... of course, I'm nearly certain guerilla grew up with the smartest 5-year-olds on the planet. :)