1) Higher Income reduces opportunity costs and risk (liberalism). Lower income increases opportunity cost and risk(conservatism).
2) Economic velocity is produced by the centralization of rents, which lowers local (productive) transaction costs at the expense of high total cost (taxation).
3) Once rents are centralized, we seek to obtain or privatize (redistribute) those rents (economic liberalism) through enfranchisement.
4) In a perfect world we seek to eliminate those rents (anglo classical liberalism).
5) But the diversity of ability leads to class warfare since meritocracy is valuable only to a minority, and rents, and parasitismare beneficial to the majority..
6) In a perfect world we pay the less able, parasitic, and rent seeking minority directly for the maintenance of the meritocratic commons, and thereby circumvent the parasitism of the bureaucratic, and political classes. And perhaps more importantly, prevent the misallocation of capital.
7) To accomplish this perfect world requires we develop institutions that allow us to produce commons, and pay people for producing those commons: meritocracy included.
X-Axis: Equalitarian/Socialist-Compromise/Social Democracy – Meritocratic/Classical Liberal Monarchy.
Y-Axis: Totalitarian- Democratic – Anarchic
Z-Axis: Wealth (elimination of transaction costs by the suppression of free riding)
Suppression of parasitism comes first. Centralize it to eliminate it locally. Then outlaw it, and eliminate it from the central bureaucracy. Economic velocity is determined by the suppression of free riding in all its forms at all levels in the polity.
(Read Emmanuel Todd’s Invention of Europe. Ricardo Duchsene’s Uniqueness of the West, Hayek’s Constitution of Liberty, Hoppe’s Democracy the God that Failed, and follow my humble efforts.)