We introduced The Master Contract (or MC for short) in a previous post. The Master Contract for the AL theory is a small set of rules that forms the basis of the AL way of life.
We must now expand on its concepts and shed light on its principles.
The third Condition of the Master Contract states:
All relations among people or organizations of any kind are ruled by voluntary contracts or if a contract does not exist, by this Master Contract or any strict logical deduction derived from this Master Contract.
This third condition makes explicit what the two previous conditions implied: the way to coexistence is through voluntary agreements that can be measured as much as possible in an objective manner: contracts.
As the great communicator (ex-president of the US Ronald Regan) used to say "trust but verify".
At this junction the standard objection we get from our would-be detractors is that we have no soul, have sold ourselves to corporations and that our only goal is to make money. And nothing can be further from the truth.
As Libertarians we believe in maximum freedom. To achieve this goal we need to have a system that is robust. Robustness originates in a common platform that people with opposing views can stand on to reach an agreement. Such a platform must be as objective as possible because objectivity equals neutrality. And how do we achieve objectivity? By providing an element that both sides of the dispute can verify independently. This element is economic in nature. Both parties understand monetary value. Both parties can make financial forecasts or estimates. Both parties understand purchases and sales. This is the minimum common ground that both parties have, regardless of any other view they may hold, even if they don’t agree with Libertarian principles.
Hence we use the economy as a platform for agreement. As a language for coexistence. Not because it is overwhelming but because it is a shared concern or interest that can be independently measured and verified.
It’s quite simple, really. If both parties to a dispute cannot possibly cheat or obtain an unfair advantage, they won’t. Yet another example of how the Absolute Austro-Libertarian system has built-in systems that provide automatic balance. No government required.
We also have to address the case when a contract does not exist. Then what? There are a few other Conditions in the Master Contract, namely #4, #5 and #6, covering the majority of such eventualities.
But what happens if there is a complex situation not envisioned in the Master Contract? Then, as the Master Contract is as much self-consistent as possible, strict logical deductions can be made. There really is no need for extra Conditions. We will see how powerful this mechanism is in subsequent posts.
Note: please see the Glossary if you are unfamiliar with certain words.
Continue to The Master Contract Explained - Condition #4