Regarding Contracts (libertarians Only, Please) - Page 4 - Politics and Economics

Two Plus Two Forums Other Topics Politics

Regarding Contracts (libertarians Only, Please)

...

Page 4 of 4

1 2 3 4

Page 4 of 4

1 2 3 4

07-18-2009 , 01:13 AM

#76

General Tsao

Carpal \'Tunnel

Join Date: Feb 2007 Posts: 30,575

Quote:

Originally Posted by ScottySo

To this objectors, I leave one final example. Say you go to the grocery store to purchase a gallon of milk. You bring your product to the cashier, who rings it up and tells you that it costs $2. You hand over the money, transferring ownership as well as control. The implied contract, of course, is that you will give your $2 in exchange for the milk.

Well, at this point, the cashier (i.e. the store) has ownership of the $2, control of the $2, and control of the milk. The objectors would also say they have ownership of the milk (though ownership was actually transferred via the implied contract.) Thus, according to the objectors, the store could simply refuse to refund the $2, refuse to give to you the gallon of milk, and insist that you leave the property.

Oh my. v interesting.

07-18-2009 , 01:48 AM

#77

Grinder At Law

enthusiast

Join Date: Oct 2008 Posts: 58

This "voluntary" society would turn into utter chaos and would not work.

First, this society, by not enforcing contracts, doesn't value opportunity costs and therefore destroys value. The landlord will not be able to rely on his property being occupied for any amount of time because renter can leave at any time he wants. In addition, landlord will have to spend more time collecting money and checking on his properties because he is afraid of unwarned vacancy. This results in higher rents. Huge value is lost here, because tenants pay more to receive the same rental unit and the landlord gets paid higher rent, but must work many more hours. Neither party is better off.

Second, the money itself is a contract. Using a common unit of exchange in an economy facilitates trade and the ability to compare the value of different items with a common unit. The government could simply stop using dollars and start using bottle caps for currency. If buyers and sellers are uncertain of the government's commitment to a currency and know that it has the ability to abandon it, trade will eventually slow substantially. This will lead to a return to the barter system, where landlord will only rent to a tenant who offers goods that the landlord needs. Problems with this system include portability of goods for barter, savings (can't deposit apples in the bank) and common exchange rates.