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Political Order 67 to 0, A;(O) or the time i needs to deter looter j declines. Correspondingly, the time 1-A; she can devote to production increases. ( 1 - o), where y is the portion that the bandit-lord spends in governing and protecting the producer and where e 2': Y> 0. ]/(1-o). 3) implies that a monarchical regime will depend on three things: the looting capacity of each side, the extraction rate, and the 69 Political Order Political Order costs of government. First, a monarchical regime becomes more attractive to producers when their capacity to fight declines- in other words, when they have worse military technologies than their potential looters.

Rasmussen, traveling through Arctic Canada in the late 1920s, wrote that "the mind of the Netsilingmiut is like the surface of the many lakes that are spread over their country; it is quickly set in commotion but the waves never become deep swells and the water quickly comes to rest again ... it is a point of honor with them to preserve their equanimity ... " 30 The Effects of Equality and Social Conformity Stability and Violence A state of spontaneous or self-enforced cooperation should not be equated with the absence of violence.

Learning-by-Doing, Inequality, and Sorting Technological innovation and growth take place through a process of learning-by-doing. While tending to their daily activities, individuals perfect or invent new technologies that raise their productivity (Arrow 1962; Lucas 1988). Initially, the invention of new technologies and the accumulation of know-how had no impact on the existing equality of conditions in prehistoric communities. The rate of knowledge accumulation was probably the same across all individuals for at least one of the three following reasons.

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Der neue Staat by Walther Rathenau


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