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Article #51Privately Produced Law
From: Hal Finney
Date: Wed, 23 Dec 1992 18:36
Date: Wed, 23 Dec 1992 18:36
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5203 bytes
One of the Extropian "buzzwords" is Privately Produced Law, often abbreviated PPL. This terminology goes back to an article in Extropy by Tom Morrow, I believe. But the concept is basically the same as what is sometimes called "anarchocapitalism", and which can be found discussed at length in such books as David Friedman's "The Machinery of Freedom" and a book by Bruce Benson whose title escapes me now. The basic concept can be seen as an extension of libertarianism. Libertarians want to reduce the power of the state, the government, to just the basic functions. PPL goes beyond this to privatize _all_ the functions of government. In PPL, there would be different organizations which, for a fee, would provide the services which we associate today with government. In particular, PPL agencies would provide legal systems which would be used to settle disputes and keep the peace. Today, there are many competing legal systems, but they are geographically separated. What legal system you live under depends on where you live. A person living in London will be subject to different laws than a person living in New York or one living in Moscow. To some extent, these legal systems can be seen as competing, in that people can move from place to place in order to find a legal system they prefer. PPL basically extends this concept to a system where legal systems are not geographically determined, but for which each individual can choose which legal system he prefers. Basically, he could sign up as a client with the PPL firm that he chooses. Each PPL system would publish a code of laws which it would enforce on behalf of its clients, along with a schedule of fees for membership. As in any market based system, the variety of choices available to consumers and the costs of the various choices would depend fundamentally on supply and demand: demand based on the preferences of the people involved, and supply determined by the difficulty of providing the various legal alternatives. The first question that most people ask when presented with this idea is, what happens when two people come into some conflict who are members of different PPL agencies? Whose law takes precedence? Without trying to predict exactly how such a system would work, there are several possible answers. It is expected that the various PPL agencies will work out "treaties", contract-based agreements for how to resolve these types of conflicts. This might work similarly to how treaties now work between nations to resolve similar cases where it's unclear whose law applies. It is _not_ expected that PPL agencies would "go to war" with each other over such disagreements, any more than the U.S. and England would go to war whenever a jurisdictional issue arises. War is expensive. There may also be private arbitration agencies established specifically to judge inter-agency disputes. In a case of conflicting PPL agency claims, the arbitration agency would decide on how the claim would be settled. There are several advantages to a PPL system. First, it basically allows the market to decide on the set of laws in use. This should expose the costs of various legal systems more clearly, allowing consumers to make better decisions about which laws they wish to live under. Our present legal system does not lend itself to decision making based on costs and benefits very well. Also, a market based system allows room for niche and minority views. Standard law is an all-or-nothing affair; the minority tends to get completely overridden by the majority. Markets, on the other hand, can offer options to even rather small minorities. If most people prefer coffee, there is still a market for tea drinkers. In addition, a PPL system does not require people to accept a particular view of the purpose of government. There is room for a variety of views, each with its own set of PPL agencies. This should reduce the political tensions which exist under the present "winner take all" system, where each group works to convince others to join their cause. PPL is relatively untried, but there have been some historical precedents. Friedman's book describes medieval Iceland as having many characteristics similar to the modern concept of PPL. It is a good reference for learning more about this concept. From the point of view of Extropians, PPL extends the Extropian principle of Spontaneous Order to the legal arena. Through the interaction of PPL agencies, arbitration services, and private individuals, "law and order" can be provided without the need for centralized monopolies in the form of governments. Hal Finney hal@ghs.com
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From: Hal Finney <ghsvax!hal@UUNET.UU.NET>
Subject: Privately Produced Law
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