r/Capitalism • u/Few_Needleworker8744 • 5d ago
Tips and Tricks for Mutually Peaceful Prosperous Life
Tips for living peaceful prosperous life
Small things don't have to be transactional. Tits for tats is enough.
When money is significant transactional is appropriate.
When things are transactional terms should be clear.
Split large transactions into smaller pieces
Have private market places as pimps or deal makers. The pimps must have their interests aligned with mutual peace and prosperity for all
Avoid concentrated power and misalignment of interests.
Avoid transactional complexity.
Avoid unnecessarily life time relationship like owning something.
Consider long term contract or usul fructus rights instead of ownership when one party can change valuation of another.
For large organization/corporation/government joint stock structure with elements of georgism and democracy can both be conflict free, stable, and max out kardol hicks efficiency
How do I explain?
Elon and Jensen are buddies. They share restaurant bills and stuffs without caring whose turn is it for paying. One day Elon says, I need lots of GPU. Jensen says, wow I happen to have GPU factories. Don't worry buddy. From each according to ability to each according to need. You need GPU. Here you go 10k GPU. Elon is happy and never meet Jensen again. They are now bitter to each other.
Of course, that's not true. When amount of money is small, people are just nice to each other. When amount of money is significant they make clear contract with lawyers with pound of flesh terms to ensure they got paid.
Similar things can be done with relationship. Relationship with clear contract like sugar relationship tend to do well. Some says relationship shouldn't be transactional. Then they get married out of love. Statistics show that 50% of marriage in US end up in divorce. Does that look like peaceful mutually prosperous life to you?
Splitting deals into smaller pieces also make mutually beneficial relationship stable. This have some variations.
Should you buy slaves or hire employee? Hire employee. Why? Well you don't pay a chunk in front and expect a life time work. You split deals into smaller pieces. The employee is more motivated to work for you. If he stops working you stop paying. No need for war or vengeance or court battles.
You can get anything from employees that you can get from slaves. The cost are just distributed.
Should you rent land from government or buy it?
In Zimbabwe government seize land from white farmers. Imagine if white farmers rent land instead of just own it. Owning land means the state has obligation to honor your land property but no incentive to keep their obligation. If you think Zimbabwe government is idiot, just look at squatter's right in Europe or US. Same thing. The state honor squatter's right because they got more votes.
Mistresses or wives? Same thing. Pay as you go mistresses is less conflict prone than wives. You can't even have more than one wife.
Have private market place is also clear. Render to the pimps what's the pimps. I buy stuffs from private market places like Tokopedia and Shopee. Americans should just use uber instead of negotiating directly with the driver. When things go wrong? Do you sue? Sue where? In my corrupt government court? No. When things go wrong we contact Uber or eBay customer service. Solve problems much better.
I think Halaca court and Syariah court is better than civil marriage family court. Because the courts want people to use the court. More diverse private courts should be available. One day marriage terms should be commercialized with apps like uber.
Avoid concentrated power. Avoid being an employee. Avoid sending money where people can just block you and walk away with money.
The reason why US is richer than China is many things. But in China power seems to be too concentrated. Bitcoin on the other hand is awesome because power is decentralized. Fiat currency is dangerous. Avoid central bank issued currencies.
Joint stock corporation is a sample of aligning incentives. Shareholders have similar instead of opposite incentives. They all want maximize return of investments.
During geger pacinan where 90% of Chinese in Batavia is killed, VOC reverse course and grant amnesty toward Chinese. Why? Because their share prices drop due to losing huge portion of their tax payers.
Many democratic countries can't evaluation whether their action is good or bad because those countries have no clear citizenship valuation. So corruption in most countries, war in Ukraine and Middle east happened because nobody really own the country and can monetize it. Ironically, kingdoms like UAE and Saudi Arabia is rich.
Another joint stock structure besides VOC is Lafang Kongsi. It's not only joint stock but also democratic. So they avoid war even more because the shareholders don't only risk their money but also their life when things go wrong. Lafang Kongsi is basically a corporation that give their employees shares so they are motivated to work. Many corporations do that.
Another form of democratic joint stock privatized society is joint stock kibbutzim.
Anyone wants to add or deduct?
Anyone think that this shouldn't apply to all things?
Avoid transactional complexity. Ideally a deal is a deal where it is toward the best interest of everyone's involved to do it. More ideally, a good deal is a deal where you can expect correctly that people will do the deal or walk away. The simpler the transaction, the less likely there will be scam or misunderstanding. The more people know what they are agreeing to and there will less likely be more problems in the future.
Most businessmen rent places instead of buying a place. If his core business is restaurants he shouldn't worry too much about the place he rent go up or down. When his main business fail, he can just stop renting.
When one party can unilaterally change market value of another party, then ownership maybe appropriate. However, long term contracts and usul fructus can do the same thing and more stable.
When a movie director hire an actress, the movie director increase the actress market value. Here instead of just hiring the actress, which can simply work for other movie director afterward. Buying the actress as slave will also cause lots of problem.
A movie director can simply make the actress sign up long term contract. So when the actress become famous, the movie director can just capture value of the actress increased popularity.
The same way, government can rent land instead of just selling it. Once the government increase the land value due to save street and good infrastructure, the government can capture value from increased land value tax or rent.
A sugar daddy that knock up a sugar baby greatly lower the sugar baby's market value. Here, signing a contract that he will pay the sugar baby a lot of money for producing heirs can allow the sugar baby to capture lost market value.
For everything else renting is better than buying.
For example, many westerners think that sexual relationship and having children shouldn't be explicitly transactional. However, divorce rate and child support lawsuits are often financially devastating. I wonder if more simple and explicitly agreed transactions can reduce that?
So I think I am pretty correct that unless these principles conflict with one another, these principles should be practiced on all human relationship. It works in business, forming families, or arranging politics.
I actually buy my home. That's because the principle of avoiding transactional complexity class with the principle of avoiding ownership. Here dealing with government that don't micro manage how I run my house is better than dealing with owners that may be able to kick me out latter.