How is society formed?

To claim that some state tax is a manifestation of responsibility to society is then the same as if we taxed participation in human society itself. However, a corporate tax is the same nonsense as, for example, a tax on having two legs.


In his last speech on the "state of the union", Barroso said an interesting thing: Banks must also hand over their share of responsibility to society to help resolve the crisis. And suddenly the European Commission approved the taxation of financial transactions.

It's such a classic cliché: someone or something has to "give up their share of society", and that's how it seems.

However, this is a nonsensical procedure and the "society" is only here as a cover for increasing tax collection.

How does human society arise?

Humans are social creatures, and therefore live in a society, one might say. Sure, it's true, but the question is: why are humans social creatures and why so do they live in society?

The reason is simple: because it is advantageous. People come together to get better.

Jak already written by Frédéric Bastiat or Sheldon Richman, look at the things you have around you and try to figure out how long it would take you to get them without human company. Imagine how many people stand behind the individual conveniences of your household.

Then imagine that those involved in the production of your PC have a similar view. They have their PC, behind which they see a huge chain of contracts and relationships, without which that computer would not have come into being. You are a small part of that chain. You, as an individual, seem irrelevant in the whole machine-making machinery, just as the unknown one becomes irrelevant from your point of view. Still, if it weren't for him (or you), you might not have your personal computer as it is.

Every individual in society does one little thing. Big things come out of a billion trifles. So even though "I" just write articles, carry food (waiters), teach students (teachers), sweep the streets, I can enjoy goods and services from countless people. All thanks to the company.

And logically: the larger the scope of that company, the more services and goods I can use. Voluntary, spontaneous market globalization it is thus nothing more than a process of expanding society that makes us all richer.

Ricardo and Mises

The whole process has been described by the gentlemen Ricardo and Mises. Sure, they are almost a century apart, but Ricardo's comparative specialization is the basis of "Ricardo’s law of association," which he writes about in Human behavior Ludwig von Mises.

Ricardo's law of comparative advantage tells us that if we specialize in what works best for us (our comparative advantage), we will be better off, although we do not do well of all people. So sure, maybe you're doing the best way to clean the streets. Sure, there are many better street cleaners, but precisely because you're doing best, specializing in street cleaning, you're getting richer.

Then the whole company together with you, simply because those who can clean the streets better than you can repair computers even better. And so on Instead of sweeping the streets thanks to you they can make a living by repairing computers.

Ricardo's law of association then says one clear thing: voluntary cooperation makes us all richer. Protectionism or the pursuit of "national self-sufficiency" impoverish us because they limit the number of people we can deal with and limit our opportunities for specialization.

State and society

The company is formed in such a way that by nature unequal, different people begin to work together, thus beginning to use their innate qualities and abilities. Diversity is the engine of society. If "everyone was equal" and everyone was the same, there is no reason to associatebecause you cannot get anything from any person that you should not have. Society is created by voluntarily associating people who with different abilities can provide different goods and services, which they can then exchange.

The society was not created by the state. In fact, there was no need to mention the state at all in the previous consideration. The state is not the creator of society. First, there had to be a society so that it could tie the burden of government to its neck.

In order to get something from society, we have to give it something. We acquire useful goods and services, we provide useful goods and services. That is why we are part of society. A company established on a voluntary basis cannot have black passengers because there is no mechanism to extract from it without giving. We show our responsibility to society in every transaction, by living in society.

The state is then the one who allows black passengers to survive. The tax, as a "manifestation of social responsibility", is nonsense. It is an above-standard payment, because each of us constantly proves and shows our responsibility to society.

To claim that some state tax is a manifestation of responsibility to society is then the same as if we taxed participation in human society itself. However, a corporate tax is the same nonsense as, for example, a tax on having two legs.


  1. What place in this company belongs to you, Mr. Kubec, as a virtual informant?
    City sewer?
    PS: How many other opponents did you crack today?

  2. Great article. The facts themselves are not new to me, but pointing out the connections, differences, consequences,… is interesting.

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