Freedom and the Agency Problem

Sue-Ellen looks so upset
This isn't the first time
And it won't be the last
There's things going on behind her back
Oh, they'll give you a heart attack
--Flesh for Lulu

It is sometimes said that freedom isn't free. The underlying truism relates to axiomatic human behavior. Humans prefer leisure over work, and less work over more work. As such, humans are inclined to seek opportunities to satisfy their needs on the backs of others, a.k.a. seeking something-for-nothing.

Absent being objects of charity, seekers of something-for-nothing will be tempted to forcefully invade the person and property of others in order to achieve their interests. These invasions constitute acts of violence and include murder, slavery, and robbery among others.

The purpose of government in a free society is to help individuals protect themselves against violent assault from those seeking something-for-nothing. Government is authorized to use force in order to help people pursue their interests without unwanted intrusion by others.

Unfortunately, people in government are not immune to something-for-nothing temptation. Some government officials will be tempted to use the strong arm of government force to satisfy their own interests. The more productive the citizenry, the more likely the phenomenon.

It is therefore necessary that people who want to remain free cannot dedicate 100% of their energies toward pursuing their interests. Some fraction of time and attention must be allocated toward keeping an eye on government, so that those authorized with use of force do not turn that force on people in a manner that restricts their liberty.

Essentially, what we have here is a classic agency problem. Freedom loving principals have retained strong armed agents to assist in protection of person and property. Since the agents' goals may differ from the principals,' it is necessary for the principals to monitor agent behavior to ensure that the agents are acting in manners that support liberty. As some anti-federalists forecast long ago, government will be quick to exploit lapses in vigilance here.

But government behavior may be difficult to monitor--particularly as the distance between government and citizenry grows. As such, freedom loving principals must complement monitoring with incentives or disincentives that keep government agent mischief in check. These incentives/disincentives might include the power to re-elect at the ballot box, sanctions for violating the law while in office, social pressure (protests, etc), pulling more government to the local level, and, in extreme cases, throwing off government in violent fashion.

The costs of monitoring and incentivizing government agents are key reasons why freedom is not free.