What if a DRO becomes really big and can't be stopped in a free society?

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by Quinton on April 20th, 2016

What happens if a DRO keeps growing and growing because there isn't a government to stop them in a free society? How do you stop somebody who is super rich from taking over society with a DRO? How do you keep the most popular DRO that people are using from turning evil?

 Filed under: Defense, DRO

2 Comments

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Quinton: This is another common point
Sun, 03/20/2016 - 12:04

This is another common point that comes up. This is not really possible. If you understand markets you will understand that monopolies aren't really possible without government. The only time monopolies really are possible is when there is a state involved which uses force to protect the monopoly company from competition. There is no state in a free society to do this. It costs money to operate any type of business and if you're doing something your customers don't like they can take their money to a competitor and take away your income. So as soon as one DRO starts to grow there will immediately be competition right next to them by a few other companies trying to provide better services. Your competitors will be always on the lookout for anything shady that you're doing, especially in the DRO industry. So if a DRO really is trying to do this it will become known and people will decide whether or not they want to support that. In a free society people will have choice to choose who they use for services so rather than just accepting the one choice they are forced to use they will instead weigh their different options. When people visit different restaurants and try different entrees they know what they're getting themselves into. Since people have multiple choices with restaurants they look for ones they like. Defense agencies will be the exact same. People will have the choice to pick the one they like and will know what they want and what they don't want. If a restaurant is secretly serving something like cat in their soup it will eventually be found out and they will probably have a huge exodus of customers.

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Quinton: We have to remember that
Sat, 04/23/2016 - 16:52

We have to remember that everything in a free society is voluntary. So in order for a business, including a DRO, to continue doing business people need to choose to support it with their money. At any time if a DRO becomes shady or does something that people don't like they can give their money to a DRO that isn't shady. If all the DROs are shady then it will be a great business opportunity to start one that isn't.

DROs will probably operate like an insurance company. So you will have State Farm DRO and Geico DRO and lots of other DROs. There will be a few big DROs that most people use and a lot more smaller, niche ones. Majority of people will go with the big ones since they are the cheapest for normal service. State Farm DRO may control like 30% of the market and Geico may control 30% also. The remaining 40% may be split between 50 other DROs. So you're going to have a few big ones that dominate and some smaller ones that still make money and service their customers.

So what happens if one of the larger DROs wants to take over a free society? What if State Farm, who owns 30% of the DRO market, wanted to take over society? Well, they're going to need money and weapons. They already have lots of weapons since that's what they're in the business of doing and they already have a large number of subscribers paying a monthly premium.

So it depends on how they go about this. They could try to go about it blatantly and just use their force against everyone, but this would be a problem. All the other DROs would turn against them and protect the people. Since State Farm controls 30% of the market the other 70% of DROs would protect their customers against State Farm. So they'd need to be larger.

So what happens if State Farm and Geico merge and now control 60% of the DRO market? How will the remaining 40% of DRO power stop them? Well, the first thing that will happen is people will stop paying State Farm/Geico and will instead support smaller, honest DROs. It will cost State Farm/Geico money to operate and without customers they're going to now have to depend on savings or some other form of financing. So State Farm/Geico are now running an unprofitable business that requires funds from some other form of capital. It could come from another business but people would know about other businesses tied to this company and would stop supporting those too.

We see this already with the Blockchain. Without getting overly technical and nerdy, whoever can consistently solve 50% of the Blockchain blocks can control the transactions and game Bitcoin. And everyone knows this. And this is why all the miners are constantly monitored and kept in check. No miner controls more than 20% of the Blockchain. If a single company were to control more than 50% or a few of the toper miners were to merge then the whole Bitcoin economy would restructure itself to keep control decentralized. People aren't stupid, especially when they have choice. So this happens all the time in the Bitcoin world and it works great.

There are going to be lots of checks and businesses in place to make sure DROs aren't attempting to do something like this. There will be businesses that's sole businesses is to ensure that DROs aren't working towards taking over society. The people working for State Farm and Geico will have to keep their plans secret and that's going to be hard to do when there is a market for making the plans transparent. It's easier for a government to keep things secret because they have unlimited taxpayer funds and a printing press. But if a free society if a business is looking shady then people can stop supporting them and they are going to lose their revenue unless they can really make people feel comfortable about giving them their money. So the incentives for the business and customers are entirely different in a voluntary free market.

Creating a DRO monopoly in a free society just wouldn't be possible. At the end of the day it would have to come down to them being financed from some type of government outside of the free society. And anybody who knows how the mafia really runs and works then they would understand the State connection to high level crime. So in oder for a DRO to really take over in a free society they would have to be funded outside of a voluntary society by some type of State that forces people to support them through whatever manipulative means is currently in style.

Moreover, what exactly will this large DRO be trying to take over? In a government society if you take over the government you take over the tax revenue and government assets. You actually get something out of it. In a free society these are all private so there isn't much to take over but land perhaps. The main thing you get by taking over a free society isn't the society itself but the prevention of a free society from happening. And isn't this what governments do already? Governments are always going around and trying to take over other countries. And this is one of the main 3 challenges that has been outlined for a free society. The problem is less about what do you do about a DRO taking over but what do you do about another government with unlimited taxpayer funds working to destroy a free society? And this is an entirely different questions with its own set of problems and solutions that have been discussed in the free book Crowd Freedom.

So in a free society a DRO becoming big won't be the problem. Monopolies can't happen in a free society. You can't get a DRO monopoly in a free society. But you can get a DRO monopoly outside of a free society that is funded from another government. And this is a problem, but it is a different question for another time.

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