[C]ommons produce opportunities (lower opportunity costs) and reduce risk (reduce transaction costs), the purpose of which is to incentivize people to seize opportunities. In other words, it is not that the externalities are non-excludable (because many are) but that ***the purpose of forming a polity is the production of discounts on opportunity costs, transaction costs, and switching costs.*** This is the source of wealth. we are not wealthier in time and effort, we have used time and effort to decrease costs such that everything is cheaper in time and effort.
Externalities may be non excludable, but the creation of negative externalities is open to prohibition, and universally prohibited. That’s what distinguishes ‘moral’ (external) and ‘ethical’ (internal). We prohibit both internal (unethical) and external (immoral) actions all the time in all cultures in all civilizations. (and we likewise fail to for that matter.)
Lets define ‘underproduced’ as referring to a structure of production of a good or service that is impossible to construct under the voluntary organization of production.
The method of producing such ‘underproduced’ goods then is subsidy. Which is exactly how we do it. We take money from other structures of production (distort them), and we instead buy (incentivize) people to produce the ‘underproduced’ good or service. This is called a mixed economy. And everywhere I know of practices a mixed economy. The question I think at hand, is not whether a mixed economy in fact produces greater wealth for all members, it is whether acts of parasitism and genetic warfare are employed within this mixed economy because of the consequences of reliance upon monopoly government. And I think the vote is in: yes. Democracy is used by the worst people to prey upon the best.
There is no value in burning middle and upper class genes to increase lower middle and lower class genes. And that is what we are doing. That is all we are doing, when we engage in producing ‘unproducables’.
The Philosophy of Aristocracy
The Propertarian Institute