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by hellojesus
345 days ago
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You still need constraints. The law should exist to protect private property. The government should collect taxes to fund the legal system and public goods. But I absolutely agree that the government shouldn't do much, if anything, more than that. Incentives to shape behavior should be extremely limited, because the government is the only entity that is allowed to force involuntarily transactions. Voluntary transactions ensure that the transacting parties have a pareto optimal outcome. This is what should be maximized, even at the detriment of the longevity of society itself. |
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I'm not deep enough in the theory to know whether "voluntary transactions create a Pareto-optimal outcome" is a true statement. I suspect not, because of information asymmetry and so on.
Pareto-optimal is also kind of an arbitrary stopping point - you chose it because it supports your argument, not because it's actually a good one. If it was possible to make everyone 1000 times richer (in physical resources) but at the cost of making Elon Musk just another average person, that wouldn't be a Pareto move because it would decrease Elon's status, but it would still be extremely good. Why shouldn't we aim for that?