The State As an Organization

Professor Mike Rozeff explains:

If a corporation strives to increase the wealth of its shareholders, it does so by increasing the satisfaction of its customers. When a state strives to increase its power or the satisfaction of its owners, it decreases the satisfaction of its subjects. They then have a larger incentive to resist or rebel. The state must then incur costs to dominate them or maintain power. The more successful the state is for itself, the more it stimulates the forces against it. This tells us two things. For given costs and benefits, there is an optimum size of the state at which the marginal cost of extending power equals the marginal benefit from extending power. Second, the rulers, acting like entrepreneurs, constantly try to lower their costs of dominating society. Removing constitutional checks and balances does this. Subverting the Bill of Rights does this. Secret police do this. Spying on citizens and national identification cards do this. Withholding taxes do this. Maintaining power is a very different imperative than maintaining profits. They entail very different agendas.

The world of corporations is competition and choice.The world of goverments is monopoly and coercion.