Re: Anarchy and spontaneous order in business and education

James Rogers (
Mon, 21 Jul 1997 14:03:32 -0700

At 04:19 PM 7/19/97 -0400, Perry Metzger wrote:
>[Delayed by DNS problems...]
>> From: James Rogers <>
>> This model assumes that everyone operates as an independent contractor. My
>> favorite aspects of this model is that it would make the work environment
>> very market driven. It would allow rapid and accurate adjustments in wages
>> as the market changed and as job requirements changed. However, the
>> current structure of business is too rigid to adapt to such a fluid and
>> equilibrium sensitive job model. I do know of (and have worked for) a
>> couple small companies that actually operate this way.
>Unfortunately, such companies would almsot certainly be torn apart by
>IRS regulations concerning who is and is not considered an employee
>for tax purposes. Operating as an independant contractor is highly
>discouraged by the tax laws. Do too much work for one entity, and
>suddenly both you and they will be in trouble with the IRS.
>As someone who makes his living doing consulting work, I'm acutely
>aware of the issues involved...

As I stated in a previous post, it is quite apparent from the tax code that
the government would prefer it if everyone was a corporate cubicle dweller.
I too make a living doing consulting work, and the take of various
government agencies (always >50%) fits very nicely under my definition of
tyrannical. They get to take more than half of my money and in return I
have to put up with harassment and absurd legislation that in no way
reflects my interests. What a deal! The IRS regulations concerning
independent contractors is essentially a way for the government to squash
free-market capitalism and financial independence. Governments thrive on
dependency, be it dependence on the government or on a company. Either way
they win in the long run.

-James Rogers