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Eliminating the Perceived Legitimacy of the State

In: Austrian Theory and Economic Organization

Author

Listed:
  • Caleb J. Miles
  • Edward Peter Stringham

Abstract

Where does the state come from and can it be instructed to act as an agent of the public? According to contractarians such as James Buchanan (1975), a constitutionally constrained state is summoned when a populace joins together and draws up guidelines for state activity. Behind a veil of uncertainty people do not know where they will end up, so they will agree to form a state that will make everyone better off. When faced with a choice of chaos without a state and order with a state, people will choose the latter (Grossman 2002; North, and Thomas 1973). Mueller (2003) describes the process of agreeing to live under a state as fundamentally similar to people joining a club. People select the rules by which they wish to be governed just as club members select the rules of their club. They select the rules for themselves and for those who will administer the state. Whether the issue is eliminating prisoners’ dilemmas or solving other collective action problems, the state is instructed to work as an agent on behalf of the public (North 1990; Olson 1965).

Suggested Citation

  • Caleb J. Miles & Edward Peter Stringham, 2014. "Eliminating the Perceived Legitimacy of the State," Palgrave Macmillan Books, in: Austrian Theory and Economic Organization, chapter 0, pages 147-174, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-36880-5_7
    DOI: 10.1057/9781137368805_7
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    References listed on IDEAS

    as
    1. Edward P. Stringham, 2010. "Economic Value and Costs are Subjective," Chapters, in: Peter J. Boettke (ed.), Handbook on Contemporary Austrian Economics, chapter 4, Edward Elgar Publishing.
    2. Edward Stringham, 2006. "Overlapping Jurisdictions, Proprietary Communities, and Competition in the Realm of Law," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 162(3), pages 516-534, September.
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    7. Stringham, Edward P. & Miller, Jennifer K. & Clark, Jeff Ray, 2010. "Internalizing Externalities Through Private Zoning: The Case of Walt Disney Company's Celebration, Florida," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2), pages 1-8.
    8. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
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