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In this ground-breaking book Filip Palda, Ph. This is the first guide for the layperson to understanding how politics and economics unite to give us the recipe for success and to provide the warning signs of disaster. Every page provides rich insights into the economics of taxation, the economics of politics so called Public Choice theory , game theory, and many other parts of economics and delves into important historical episodes to illustrate why Pareto efficiency is the only feasible route to peace and prosperity.

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Nations that trade have a disincentive to fight each other. But peace is not merely the state of affairs that exists between nations that are not at war; it is also the state of affairs that exists between individuals who are not at war, and this is where Palda begins: For peace to reign, people do not need to love their neighbours. What they do need is to feel that there is some kind of balance between what they put into society and what they get out.

Some believe that this balance can best be achieved by centralized control, in which the use of resources is dictated by government exercising broad coercive power. But central planning famously suffers from an intractable calculation problem: Central planning also concentrates power in the hands of a few and creates incentives for them to steal.

Fortunately, there is an alternative: Voluntary Centralization The fact that decentralized ownership of resources leads to more peaceful and prosperous societies than centralized ownership is supported, as Palda points out, by comparisons of nations that are similar in every other regard, like North and South Korea, Haiti and the Dominican Republic, or East and West Germany before reunification. In each case, the country with more decentralized ownership is or was clearly more peaceful and prosperous.

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Those Three Words. The House of Pure Being. There is no progress in human history. Democracy is a fraud.

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Gnomes of Suburbia Nexus Chronicle Book 1! Paretos Republic and the New Science of Peace. Among his publications: Evoluzione e crisi del mondo normativo. After his retirement, he received several literary awards for his narrative and essayistic activity Scanno , Basilicata , Carlo Levi Ways Out of the War Vilfredo Pareto.


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