At 10:46 AM 4/2/04 -0500, R. A. Hettinga wrote:
The idea is, if transaction and price discovery costs fall enough, private force companies that auction their services in a free market become better than the "public" ones that rely on confiscated tax revenue.
Only if they offer comparable services. Which they won't be able to, see below.
I'd expect that sooner or later companies like Blackwater will start training recruits in competition with the armed forces instead of just hiring vets.
The govt has a monopoly on certain tools of the trade. Now while a private army (Wal-Marmy?) can get some of these toys on the black (free) market, they either can't get the best stuff, XOR the USG has a problem since that means anyone can get it. Everything from surveillance to weapons. And crypto-wise, reputation will clearly be important here. But yes, obviously, easy communication leads to more optimal markets, for both goods and services.