WE TRADE INTERPERSONAL CORRUPTION … We trade interpersonal corruption, which i

WE TRADE INTERPERSONAL CORRUPTION …

We trade interpersonal corruption, which is endemic in the rest of the world, for systemic corruption of organizations in the western world.

I am still struggling a bit to be sure that I understand these processes. But certainly coercion exists equally in these societies. The question is the transfer of transaction costs from individuals to organizations. It is far easier and cheaper for us to interact with one another. But it appears it is equally complicated for the organizations that we belong to (political parties) to resolve high friction differences.

Economic productivity then, is gained by the process of pressing free riding and rent seeking and that form of involuntary transfer that we call price competition from a property of personal relations, both into the market where it is not visible and it is morally sanctioned, but also, into the political system.