What should be private? foldvary.net/works/private.ppt Fred Foldvary Dept. of Economics Santa Clara University, California

The meaning of “private” Two sectors of the economy: Governmental and private. Private: not governmental, Pure free market: voluntary for all Includes private communities: land trusts, homeowners’ associations, hotels, shopping centers.

Imposed vs. voluntary governance Voluntary club: do whatever the members want. Imposed government can be a tyrant. For justice, need to limit the government sector. The remainder is private

Some things we only want one of What should be a governmental monopoly: Army Highest court Chief Legislature (can have two houses)

Everything else can be private Money and banking Education Streets Voluntary, contractual governance with civic associations. No subsidies other than to the poor who do not receive charity.

Henry George: true free trade Implies private property in produced goods and services. Natural monopolies owned by the communities. Central planning fails. The pure free market is efficient. For equity: equal shares of natural rent.

A purely private world Local contractual communities. Elect higher level associations. All governance is voluntary for those who are peaceful and honest. Rent is collected from the communities. Most join to get a package of goods.

Two systems Geo-anarchism: all is private. Equal shares of rent are distributed to individuals. Geo-statism. The state collects the rent; Either for public goods or dividends. Commanding heights are governmental. All else is best private, free-market.