Private U.S. Guards Take Big Risks for Right Price

[Major Variola (ret)]

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.