In the society you propose, even the simplest of things like roads would either not exist, or would be a terrible hassle.
If it is up for companies to build roads for the rest, they will want money for it in return. So, you are going to have to pay to drive on a road, but hey, this is now a product, thus competition will come, more companies will start building roads, and on each road you need to pay a different company. Soon there will be 28 different roads between LA en San Francisco, cause hey, its a popular route, so all companies want in on that prime spot.
But I will also give you a more realistic picture of why a government is needed. Not to long ago with something called bouwfraude in the Netherlands, basically what this was about was that the biggest construction companies in the Netherlands had made deals amongst each other to keep prices high and divide the various offers amongst each other. Thank to government regulation, all those companies got fines and they had to stop their little fraud ring. Would there not have been a government to regulate this, those companies would still have been overcharging everyone for their construction needs.
And as far as I know, Tversky has nothing to do with the Austrian School, and in fact, the Austrian School is often referred to by libertarians and laissez-faire people. Tversky however has indirectly won a Nobel prize for his work on how humans react to certain economic situations. Guess what, people are all different, a free-market doesn't work because the assumption that all people would act as Homo Economicus is utterly wrong. Thus a society without any regulation, as you propose, would quickly turn into pure chaos and utter destruction.
If it is up for companies to build roads for the rest, they will want money for it in return. So, you are going to have to pay to drive on a road, but hey, this is now a product, thus competition will come, more companies will start building roads, and on each road you need to pay a different company. Soon there will be 28 different roads between LA en San Francisco, cause hey, its a popular route, so all companies want in on that prime spot.
But I will also give you a more realistic picture of why a government is needed. Not to long ago with something called bouwfraude in the Netherlands, basically what this was about was that the biggest construction companies in the Netherlands had made deals amongst each other to keep prices high and divide the various offers amongst each other. Thank to government regulation, all those companies got fines and they had to stop their little fraud ring. Would there not have been a government to regulate this, those companies would still have been overcharging everyone for their construction needs.
And as far as I know, Tversky has nothing to do with the Austrian School, and in fact, the Austrian School is often referred to by libertarians and laissez-faire people. Tversky however has indirectly won a Nobel prize for his work on how humans react to certain economic situations. Guess what, people are all different, a free-market doesn't work because the assumption that all people would act as Homo Economicus is utterly wrong. Thus a society without any regulation, as you propose, would quickly turn into pure chaos and utter destruction.
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