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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. Leeson Peter T. & Williamson Claudia R., 2009. "Anarchy and Development: An Application of the Theory of Second Best," The Law and Development Review, De Gruyter, vol. 2(1), pages 77-96, July.
    3. Peter J. Boettke (ed.), 2010. "Handbook on Contemporary Austrian Economics," Books, Edward Elgar Publishing, number 12822.
    4. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, July.
    5. Edward Stringham (ed.), 2005. "Anarchy, State and Public Choice," Books, Edward Elgar Publishing, number 3741.
    6. Fred E. Foldvary, 1994. "Public Goods And Private Communities," Books, Edward Elgar Publishing, number 167.
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