My book, The Proprietary State, is now available!
Probably the most radical economics book you've ever read.
I’m happy to announce that my book, The Proprietary State, has recently been published by the Free Cities Foundation. It contains 350 pages of (very) heterodox economic theory and shatters some established economic theories and political ideas.
“Kerpestein’s book is one of the most interesting works in economics, providing a potential blueprint for how territorial governance may be provided in the not too distant future.”
Erick Brimen, founder & CEO of Próspera
“An important contribution to the discussion of new systems of governance.”
Titus Gebel, founder & CEO of Tipolis and author of Free Private Cities: Making Governments Compete For You
The book emerged from a question I once asked myself: What if a government takes the form of a for-profit corporation? Forget the usual debates about left versus right. The Proprietary State throws a curveball into the entire political landscape. It dares to ask: what if we privatised the very act of ruling? Imagine a government with shareholders instead of voters, pursuing profit. The book dives deep into this radical idea, dissecting the potential boons and pitfalls of a ‘proprietary government’ – a government driven by profit motives, accountable to investors instead of voters.
Could this seemingly extreme idea actually be a powerful engine for progress, capable of lifting millions out of poverty? The book argues it could, but it does not shy away from the inherent dangers. How do you ensure that a profit-maximising government treats its subjects like valued customers, not just cattle to be exploited?
The Proprietary State is not for those who prefer comfortable certainties. It will challenge your deepest assumptions about economics and political theory, forcing you to confront a truly novel vision of governance. It is a comprehensive theory of the proprietary government and a radical revision of established economic theory. A must-read for economists and political scientists.
From Theory to Theory
Explaining the proprietary government, its advantages and its disadvantages has required a radical revision of established economic theory. First, The Proprietary State starts with one definition, the definition of ‘cooperation’. Moving beyond traditional notions of ‘trade’ and ‘exchange’, the book establishes ‘cooperation’ as the fundamental building block of economic theory, leading to profound implications for our understanding of contracts, enforcement, and the necessity of government itself. Cooperation is a much larger and more definite category of action than trade and exchange, and the reader will see the problems with the latter categories. Along the way, the book challenges both mainstream and Austrian economic theories while shattering fundamental ideas in libertarian thought, such as the idea that a government’s use of force necessarily violates our consent or that our subordination to a government is involuntary.
How would a proprietary government behave? The answer to this question is not so simple. The baker and the supermarket cannot force people to be their customers, but a government can do so at gunpoint. A government can treat its subjects like cattle instead of customers. And history shows that when people get the opportunity to do so, some will take it up. Under what conditions, then, can a government only maximise profit by best satisfying the preferences of the people it governs? That is, under what conditions is there ‘consumer sovereignty’ over governments? In this context, we could call such consumer sovereignty ‘proprietary democracy’. The book explains how consumer sovereignty, contrary to what many economists believe, is inevitably limited. To this end, it contains a groundbreaking theory of entrepreneurship that, like the theory of cooperation, seriously challenges both mainstream and Austrian theories. There are ways for entrepreneurs to benefit from acting at the expense of those they serve. Even more so, such courses of action are also available to governments. To ensure that governments treat their subjects like customers instead of cattle, certain institutions must be created.
As the reader will discover, proprietary governance has unique benefits. By their nature, all representative democracies have certain problems and inefficiencies that do not exist in the proprietary system, such as bureaucratic bloat, clientelism and corruption. If the right institutions are created, we can get the benefits of proprietary governance without many of the drawbacks. The Proprietary State explains how. Besides, representative democracy has its own unique benefits. The book explains how to create a ‘hybrid system’ to get the best of both worlds. Imagine a world wherein profit-driven and representative systems work together, creating a powerful synergy that could revolutionize governance as we know it.
As the book connects new economic theories to explain the reader everything about the proprietary government, it casts novel perspectives on old and established theories and ideas. It takes a new perspective on public choice theory, explaining why the problems of public choice only apply to democratic governments and why privatising jurisdictions solves these problems. It also shatters Spencer Heath’s idea of proprietary administration, explaining how it cannot efficiently exist at scale. By solving the inherent problem in Heathian proprietary administration, we arrive at proprietary governance.
A ‘Proprietarian’ Revolution?
This book is not just a theoretical exercise. And, as the reader will discover, proprietary governance is not new at all. The Proprietary State invites you to become a ‘proprietarian’, a term that emerged centuries ago when proprietary governments ruled much of the new world. But this time, proprietary governance will have a different and potentially much more significant role. In recent years, it has re-emerged from obscurity. Could this be the dawn of a new era in political systems? If we take the right steps, a world where millions, if not billions, can escape oppression and fulfill their economic potential is within reach. Prepare to have your assumptions shattered and your view of politics changed fundamentally.
Click here to buy the ebook ($1.99) or paperback ($9.99) on Amazon.