12.17.1. Reasons to have no government involvement in commerce - Even a small involvement, through special regulations, granted frachises, etc., produces vested interests. For example, those in a community who had to wait to get building permits want _others_ to wait just as long, or longer. Or, businesses that had to meet certain standard, even if unreasonable, will demand that new businesses do so also. The effect is an ever-widening tar pit of rules, restrictions, and delays. Distortions of the market result. + Look at how hard it is for the former U.S.S.R. to disentangle itself from 75 years of central planning. They are now an almost totally Mafia-controlled state (by this I mean that "privatization" of formerly non-private enterprises benefitted those who had amassed money and influence, and that these were mainly the Russian Mafia and former or current politicians...the repercussions of this "corrupt giveaway" will be felt for decades to come). - An encouraging sign: The thriving black market in Russia- -which all Cypherpunks of course cheer--will gradually displace the old business systems with new ones, as in all economies. Eventually the corruptly-bought businesses will sink or swim based on merit, and newly-created enterprises will compete with them. 12.17.2. "Purist" Approach to Keys, Cash, Responsibility + There are two main approaches to the issue: - Key owner is responsible for uses of his key - or, Others are responsible + There may be mixed situations, such as when a key is stolen...but this needs also to be planned-for by the key owner, by use of protocols that limit exposure. For example, few people will use a single key that accesses immediately their net worth...most people will partition their holding and their keyed access in such a way as to naturally limit exposure if any particular key is lost or compromised. Or forgotten. - could involve their bank holding keys, or escrow agents - or n-out-of-m voting systems - Contracts are the essence...what contracts do people voluntarily enter into? - And locality--who better to keep keys secure than the owner? Anything that transfers blame to "the banks" or to "society" breaks the feedback loop of responsibility, provides an "out" for the lazy, and encourages fraud (people who disavow contracts by claiming their key was stolen).
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