The Law of Conservation of Costs

by John Dow

Much like thermodynamics – where energy cannot be created or destroyed merely transformed – in economics, cost cannot be created or destroyed, merely transferred.

The Government offsets limited liability with the cost it bares to establish the sovereignty with which it can limit liability.

Without a Sovereign Insurer, businesses which impose damages on other parties would likely face retaliation unless they compensate for their damages. The Sovereign supresses this retaliation with superior force, yet it spares the party upon whom damages have been imposed the cost of retaliation by also insuring them against these damages, albeit within limits.

Violence is just another form of labour, and a costly one at that. Just as labour has a price, so does violence.

If you don’t like it, take up arms and revolt against the Government, if you can afford it.

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