Thursday, November 10, 2011

Charter City Rules

If I were to start a Charter City as explained by Paul Romer in his 2007 Ted Talk, the key institutions, or "rules of the game" as he calls it, that I would employ to ensure economic prosperity would be the right of property be maintained, as well as the protection of life, that the rule of law be followed, and last but not the least, freedom of religion.

When the pilgrims settled the very first colonies, they tried living a "christian communism." The governor of one such colony, William Bradford said, "[it] was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort… And for men’s wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc., they deemed it a kind of slavery, neither could many husbands well brook it.” The colony later adopted a different set of rule in which each family was essentially put in charge of growing as much corn for their respective families as they could. The result was more abundance than ever before and never a recession to the like of which they had those first few years under the "common ownership" communistic period. The right of property is a right ordained by God and is also the very driving power for economic growth in a community. When God commanded we not steal from each other, the implication is that there is property that belongs to an individual that must be respected. When we can claim ownership of something, we take pride in it, we gain strength, comfort, and confidence from it and that we can live self sufficiently. Naturally, we as a social unit work together to find win win scenarios where we  both come away with more personal property, i.e..  goods, for services.

Protection of life. If it is extremely difficult in a society whose laws keep me safe from theft and murder, to start a successful business, I would say it would be nearly impossible if I had to fight for my life every step of the way as well. Thus protection of life is also a necessity for my charter city.

There must be precedent for the rule of law. A rule of a govt. that does not wield the power so much as it does protect and serve the power, i.e. the laws established in the land. The govt. is not above the law, but must protect the law. The law is the governor, the law is king. The rule of the Law, not the Crown. A political science professor Li Shuguang explained the difference between rule OF law, and rule BY law as such: "The difference....is that, under the rule OF law, the law is preeminent and can serve as a check against the abuse of power. Under rule BY law, the law is a mere tool for a government, that suppresses in a legalistic fashion."[27](Tamanaha, Brian. On the Rule of Law, page 3 (Cambridge University Press, 2004).) Maintaining a govt. based on the rule of law Helps police the growth of corruption. It helps with checks and balances and provides that laws are not changed quickly so as to provide security to it's people it governs and not chaos.

Finally, the freedom to practice religion without govt. involvement or discrimination as to religious beliefs. Edmund Burke said, “Religion, always a principle of energy, in this new people is no way worn out or impaired; and their mode of professing it is also one main cause of this free spirit." "This spirit of liberty… was the source was their religion." (Ryan Johnson) Religion is also a great motivator, just as self interest is, or may I put it, interest for one's family. When motivators are grounded in moral objectives, there is economic growth all around. When allowances for moral objectives are made, or rather incubators for cultivation of these objectives are employed, the same is achieved. Greed is not moral, and as such does not flourish as well.

3 comments:

  1. Good job Doug. Perhaps next time you could incorporate the reading a little more and be a little more specific of how your "rules of the game" would help your economy (like how freedom of religion would benefit a free market economy).

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  2. all of my information came from the readings. The Ted talk by Romer, the essay by Ryan Johnson...

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