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<?xml-stylesheet type="text/xsl" href="http://mises.org/Community/utility/FeedStylesheets/rss.xsl" media="screen"?><rss version="2.0" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" xmlns:wfw="http://wellformedweb.org/CommentAPI/"><channel><title>Brainpolice : Decentralization, Economics</title><link>http://mises.org/Community/blogs/brainpolice/archive/tags/Decentralization/Economics/default.aspx</link><description>Tags: Decentralization, Economics</description><dc:language>en</dc:language><generator>CommunityServer 2008.5 SP2 (Build: 40407.4157)</generator><item><title>Competition and Cooperation</title><link>http://mises.org/Community/blogs/brainpolice/archive/2008/11/19/competition-and-cooperation.aspx</link><pubDate>Wed, 19 Nov 2008 12:34:00 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:65439</guid><dc:creator>Brainpolice</dc:creator><slash:comments>467</slash:comments><wfw:commentRss xmlns:wfw="http://wellformedweb.org/CommentAPI/">http://mises.org/Community/blogs/brainpolice/rsscomments.aspx?PostID=65439</wfw:commentRss><wfw:comment xmlns:wfw="http://wellformedweb.org/CommentAPI/">http://mises.org/Community/blogs/brainpolice/commentapi.aspx?PostID=65439</wfw:comment><comments>http://mises.org/Community/blogs/brainpolice/archive/2008/11/19/competition-and-cooperation.aspx#comments</comments><description>&lt;p&gt;In the economic sense of the term, competition refers to the incentive to better appease a multiplicity of demands, and cooperation refers to the most efficient and ethical means of meeting such demands. An individual&amp;#39;s demands are better met through cooperation and production than through isolation and destruction. Competition does not refer to a war of all against all or atomism, it refers to a process in which decentralized cooperation is employed in the attempt to fulfill a dynamic and variant latticework of demands. Monopoly, on the other hand, refers to the lack of competition, the imposition of a singular or more limited array of options through coercive means. Competition and monopoly are therefore dichotomous in this sense, as competition entails a multiplicity of options pursued freely. Competition is a reflection of there being multiple methods of cooperation and multiple ends that cooperation can be used to pursue, and as such there is no absolute dichotomy between competition and cooperation.&lt;br /&gt;&lt;br /&gt;Individualism does not regaurd the individual as if they exist in a vacuum, it merely recognizes the individual&amp;#39;s sovereignty as co-existing with interpersonal relations, and that it is a fundamental building block of a society. It is erroneous to present a false dichotomy between uniformity and atomism, when neither of the two reflect the nature of an individual let alone a society. Society qua society is founded on voluntary cooperation, but this does not conflict with individual sovereignty. Voluntary cooperation is merely the net effect of people making use of their individual sovereignty, and competition is merely a reflection of the diversity of wants that people pursue as sovereigns. While interpersonal relations are something to take into account, the individual still retains their independance from the transgressions of others in an equilibrium, which aknowledges the competitive element of society that is responsible for creativity and innovation.&lt;br /&gt;&lt;br /&gt;Cooperation and production is not an ethical imperative in and of itself, it is something that one has a greater incentive towards in conditions of equal liberty. However, one ultimately retains their sovereignty to not produce and not participate in a particular organization or interaction that they didn&amp;#39;t explicitly consent to. In a voluntary society, the methods in which one cooperates and the extent to which there is a binding obligation to cooperate can only be in a contractual context in which consent is explicitly given prior to the enforcement of the obligation. One does not have an unchosen positive obligation to be a member of a particular organization or to participate in its process of decision-making. The implication of this is not the negation of society as such, but the decentralization of society as a consequence of people entering and exiting from a wide array of contractual agreements.&lt;br /&gt;&lt;br /&gt;The coercive imposition of uniformity stifles cooperation. It disincentivizes and erodes at competitive alternatives that otherwise would have been fostered through cooperation, and it&amp;nbsp;violates the individual&amp;#39;s sovereignty. Coercion is anti-cooperative by its very nature, as it can only establish a parasitic relationship or a zero sum game, while cooperation is geared towards mutual benefit or reciprical relationships. Centralization and monopoly can only establish the elimination of individual choice in the process of cooperation, and therefore the elimination of competition. Competition is necessary to counteract thea rbitrary imposition of a particular set of preferences, otherwise there is no genuine cooperation to speak of, only subservience. Cooperation is not something that is centrally planned or coercively enforced, it is a process of spontaneous order. &lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;&lt;img src="http://mises.org/Community/aggbug.aspx?PostID=65439" width="1" height="1"&gt;</description><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Coercive+Monopoly/default.aspx">Coercive Monopoly</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Competition/default.aspx">Competition</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Decentralization/default.aspx">Decentralization</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Centralization/default.aspx">Centralization</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Monopoly/default.aspx">Monopoly</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Checks+and+Balances/default.aspx">Checks and Balances</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Means+and+Ends/default.aspx">Means and Ends</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Social+Contract/default.aspx">Social Contract</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Consent/default.aspx">Consent</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Economics/default.aspx">Economics</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Free+Association/default.aspx">Free Association</category></item><item><title>Does Social Evolution Necessitate Decentralization?</title><link>http://mises.org/Community/blogs/brainpolice/archive/2008/05/21/does-social-evolution-necessitate-decentralization.aspx</link><pubDate>Wed, 21 May 2008 21:36:00 GMT</pubDate><guid isPermaLink="false">944abf2b-d1be-4bf2-990d-438cb0e377e9:34166</guid><dc:creator>Brainpolice</dc:creator><slash:comments>1</slash:comments><wfw:commentRss xmlns:wfw="http://wellformedweb.org/CommentAPI/">http://mises.org/Community/blogs/brainpolice/rsscomments.aspx?PostID=34166</wfw:commentRss><wfw:comment xmlns:wfw="http://wellformedweb.org/CommentAPI/">http://mises.org/Community/blogs/brainpolice/commentapi.aspx?PostID=34166</wfw:comment><comments>http://mises.org/Community/blogs/brainpolice/archive/2008/05/21/does-social-evolution-necessitate-decentralization.aspx#comments</comments><description>&lt;p&gt;Social evolution can be thought of in terms of &lt;em&gt;increased complexity&lt;/em&gt;. Simple&amp;nbsp;forms of&amp;nbsp;organization are uniliteral and homogenous, while more complexity in an organizational structure&amp;nbsp;implies &lt;em&gt;pluralism&lt;/em&gt;. Increased plurality, combined with a finite number of variables or resources to work with, implies &lt;em&gt;smaller units&lt;/em&gt;. The more complex that a pattern is, the harder it is to understand or calculate or predict it from a central point or plan. The more simple and centralized that an organization is, the harder it is to keep track of all of the variables involved (I.E. the calculation problem comes into play). &lt;/p&gt;
&lt;p&gt;It follows that as the complexity of an economy or society increases, &lt;em&gt;entropy&lt;/em&gt; occurs as attempts at central planning fail and become increasingly&amp;nbsp;obsolete methods for organization. Social evolution would seem to point in the direction of &lt;em&gt;increasingly smaller social units&lt;/em&gt; and an increase in the diversity&amp;nbsp;of social units both relative to eachother and in terms of their internal nature. This would seem to imply the long-term&amp;nbsp;inevitable collapse of states and &lt;em&gt;large organizations in general &lt;/em&gt;as being &amp;quot;unfit&amp;quot; for the proper environment for human developement. In short, at some point&amp;nbsp;the social and economic interactions of people in and of itself&amp;nbsp;starts to outpace currently existing institutions. &lt;/p&gt;
&lt;p&gt;While the calculation problem is usually used to show how state-socialism is an impractical failure, it also implies its ultimate demise. And it additionally functions nicely as a much more broad theory of institutional analysis in general that may extend to certain non-governmental institutions. An organization is an organization and the calculation problem is ultimately an &lt;em&gt;organizational theory&lt;/em&gt; in addition to being an economic theory. The calculation problem essentially&amp;nbsp;proves that &lt;em&gt;decentralization&lt;/em&gt; is more efficient than centralizaton as methods of economic organization. When integrated with theories of spontaneous order and social evolution, the calculation problem starts to&amp;nbsp;have a new&amp;nbsp;and increased&amp;nbsp;significance. &lt;/p&gt;
&lt;p&gt;But while social&amp;nbsp;evolutionary and economic&amp;nbsp;theories are very helpful in understanding such matters, ultimately sucessful&amp;nbsp;social evolution depends on the driving force of &lt;em&gt;social revolution &lt;/em&gt;and some degree of beneficial change in the general&amp;nbsp;&lt;em&gt;ideological atmosphere&lt;/em&gt;. Progress results from sucessful&amp;nbsp;and beneficial deviations from the norm, which in turn implies concepts such as &lt;em&gt;civil disobedience &lt;/em&gt;and &lt;em&gt;education&lt;/em&gt;. Societies start to stagnate when they become too apathetic to develope and use independant mechanisms to counter the negative and harmful traits of the existing organizational structure. That is, the seeds of sucessful social evolution are to be found as far outside of and as &lt;em&gt;independant&lt;/em&gt; from the existing organizational structure as possible. &lt;/p&gt;&lt;div style="clear:both;"&gt;&lt;/div&gt;&lt;img src="http://mises.org/Community/aggbug.aspx?PostID=34166" width="1" height="1"&gt;</description><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Anarchism/default.aspx">Anarchism</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Decentralization/default.aspx">Decentralization</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Centralization/default.aspx">Centralization</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/The+Calculation+Problem/default.aspx">The Calculation Problem</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Social+Evolution/default.aspx">Social Evolution</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Entropy/default.aspx">Entropy</category><category domain="http://mises.org/Community/blogs/brainpolice/archive/tags/Economics/default.aspx">Economics</category></item></channel></rss>