In primitive tribes and pre agricultural history, peaceful agreements amid population may indeed last. However, in large populations which cod undergone substantial agricultural leaps, individuals entrust not be tend to advance collective heftys, since the costs of providing the collective good leave behind greatly exceed the benefit of the collective good. Thus, according to Olson, no one has ever observed a large agricultural society formed through social contract, or, through consensus by all individuals in society (568).
BNQ: Why do elected governments form?
Olson finds that stationary bandits are preferred to wandering(a) bandits. The last mentioned would ravage the population from time to time, stealing everything that the people made. On the other hand, if the roving bandit settles and monopolizes the theft of a detail area, protecting tax collectors, then revolution and the threat of roving bandits are eliminated. Olson calls this the first blessing of the invisible handthat a bandit would settle down, wear a crown, and replace anarchy with government (568).
The people mainly prefer stationary bandits beca handling they manage to what extent the theft by the stationary bandit will be extracted from them, and, the stationary bandit will always pledge less than the roving bandit, while the roving bandit steals everything from the people from time to time.
The stationary bandit will collect as much taxes as possible. There is, of course, a level of revenue enhancement which will decrease revenues for the dictator and the people. It would not be in the interest of the dictator to surpass this point of equilibrium, for it would lead to the disadvantage of both the dictator and the people. Also, it is in the interest of the dictator to use some of the theft-through-taxes on public goods. Wise public good investments by the dictator may add the national income, which would increase tax revenues.
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