The extent to which property rights are upheld by court enforcement is often used as an indicator for economic prosperity . This makes excellent sense, as it is hard to imagine a large division of labor wherein violations of property rights are rampant. However, this fallacious thinking ignores other methods of securing property rights. Said rights are not maintained by courts alone; as economic theory and history tell us, there is another important factor in securing safe transactions: signaling.
Signaling is when one party performs an action that is costly if they were to renege on the terms of an exchange. Often-employed store-branded signs (think of the giant McDonald’s “M”) are an excellent example of signaling; signs are often costly, and in having one, a merchant displays that they are trustworthy. If they were not trustworthy, then investing in an expensive sign would prove useless. A bank constructing a beautiful building and a food company buying ads are further possible examples of signaling. Signaling allows for the sorting of transactors without employing courts or any form of law enforcement.
While signaling sometimes ensures safer transactions, appealing to courts for remuneration after theft (or worse) could be less costly than signaling. This much is apparent; but, in a free market we would expect actors to signal and consult courts. Furthermore, we would expect individuals to invest in each until their rates of return equalize. However, we do not live in a free market, and there is one major hindrance to this analysis: the government runs the courts.
In most of the United States, affording private schooling for one’s children is more complicated than merely paying the tuition; one is also foregoing the taxes paid to public schools. If one pays $5,000 in taxes towards public schooling, then in paying $6,000 for private schooling, […]
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We Often Feel Like David Taking on Giants
Today’s Goliath is the Mainstream Media Industrial Complex that brainwashes the masses.
Our mission is very straightforward: To counter the false narratives and nefarious agendas destroying America today. It isn’t easy for obvious reasons; despite incredible growth over the last year we are still a very tiny fish in a huge media pond. But we’re fighting and we will continue to do so, Lord willing, for as long as we possibly can. The battle for America’s present and future is too important for us to back down to the giants that stand in our way.
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