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IPFS News Link • Free Market

Your Options: To Serve, Or To Serve

• LewRockwell.Com

Guest Post by Robert Gore at Straight Line Logic

There are three ways for a person to obtain something of value from another person: receive it as a donation, steal it by force or fraud, or exchange for it. It's not much of an oversimplification to say that the advance of civilization has hinged on its movement from the first two methods to the third. The right to exchange, and the right to promise as part of a future exchange—the right to contract—are now taken for granted, but those rights are delicate and a whole complex of rights, assumptions, and obligations are subsumed by them. Their intellectual foundations are being undermined as the equality of rights implicit in contract and exchange gives way to a regressive inequality of rights: servitude.

The essence of exchange is a choice; it's voluntary. Both parties have the choice of whether or not to transact, and neither will do so unless they subjectively value what they receive more than what they give up. That is not to say that there will be equality of resources, bargaining power, or negotiating skill between the parties, or that they will be equally happy with their bargain, only that both parties have the same choice to accept or reject the proposed transaction. Exchange embodies that equality of rights between parties, but not an equality of outcomes.

The right to exchange implicitly assumes that parties are the best judges of their own interests and that such determinations will be respected by both the parties and those outside the transaction. The rights to exchange and contract are individual rights, and the obligation to fulfill one's side of the bargain an individual obligation. A collective entity such as a business can contract and exchange, but either the members of that entity have agreed that they will, collectively, do so, or have, by their membership in that entity, recognized implicitly or explicitly the right of those directing the entity to do so.

The concept of a social contract is a contradiction in terms. With whom does a society contract? An entity cannot contract with itself. The notion has come to mean acceptance by the governed of the government, whatever its form. However, individuals have no choice to opt out of the collective entity known as society, as they would any other voluntarily chosen entity they joined, and the social contract supposedly binds not just those who were part of the society when the contract was made, but future generations. Thus, the term social contract wrongly connotes voluntary choice of an institution whose establishment has always been the product of chance and force and has no meaning at all for the unborn who will nevertheless be compelled to live under the government so established.


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