Sunday, August 21, 2016

Aphorisms 10

Because of co-ordination costs, it is easier for a small group to organize for the purposes of rent seeking than a large one.

Second: because of co-ordination costs, it is almost always profitable for a small group to organize than a large one, and almost never popular for a large group to co-ordinate to defend against this.

When it is profitable for a large group to co-ordinate, it is only for the purposes of creating massive entitlement programs.

Corollary: small groups are repressively redistributional.

Therefore legislation accumulates relentlessly, and so does redistribution.

All law designed for profit distorts the market, and all laws are made for profit.

Therefore, distortion accumulates.

As distortion accumulates, market failures accumulate.

All failures of the market are caused by government, and all failures of the government are caused by the market.

Market failures are generally blamed on the market, rather than their true source, the government.

Law, being profitable to special interests, creates market failure.

Thus, market failures caused by law drive public demand for new law, while the profitability of economic rents incentivizes law making.

The whole process accelerates exponentially towards collapse.

Thus, on the last day of a democracies existence more law may be created than in the first ten years of the nations history.

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