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Ep. 687: Peter Leeson Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Paradox of Pirates

In the Federalist Papers, James Madison describes a paradox. He said we need to somehow endow rulers or leaders with some sort of power in part to overcome these problems that I just talked about. So how do you simultaneously empower and constrain rulers? Why do I say that pirates confronted this on their ships? Well, pirates needed leaders too. The primary income earning aspect of piracy necessarily engaged in perspective at least battle with potential frauds. If pirates couldn't do these three things, piracy was not possible. It was that critical.

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