A Logical Understanding of Markets vs Coercion

1. Society = Community

2. Community requires interaction

3. Two types of interaction
a. Voluntary
b. Coerced

4. Two types of voluntary interaction
a. Markets
b. Altruism

5. Altruism not practical

6. Two types of interaction
a. Coercion
b. Markets

7. Interaction based on markets
a. A desires good/service X
b. B recognizes A's demand and produces X
c. B produces X at Y cost
d. A recognizes opportunity to obtain B for Y+P cost
e. A values X at Z amount
f. If Z > or equal to Y+P , A will purchase X from B
g. If Z <> or equal to Y+P. If they cannot agree to that price, no transaction
h. Transactions, even if they fail to occur, result in most beneficial outcome for all parties
involved
i. Interaction is not corrupted
j. Society is not corrupted

8. Interaction based on coercion
a. G has monopoly on application of legal force on all parties
b. G has monopoly control over all terms and conditions of all past, present and future
transactions for all parties
c. Perverts fundamental institutions that all market conditions are based on
d. Interaction is corrupted
e. Society is corrupted

9. Markets are preferable to coercion in terms of societal operation

This is obviously a very simple application of logic towards both of these organizational styles. There are clearly many more variables that need to be taken into account in such analysis. But I do think the underlying premises and conclusions are fair and accurate. Also, to note, I am not advocating anarchy in this analysis. I am simply noting the perversion of markets governments inevitably create when they interfere in areas that markets should solely be involved in. But in areas where markets are not appropriate, the institution of government is not simply preferable, it is necessary. In other words, government is necessary to facilitate effective market interaction. But government should not involve itself in the actual interaction. And that is from everything as subtle as indirect regulation to as blatant as direct competition with private participants.