Education conveys a civic externality, a benefit to society over and above the benefit to the student in enhancing his future earning power. Students are taught not only to be productive but to be law abiding and loyal to their country. The civic externality is incorporated into an 'anarchy'...

For centuries, it has been recognized that democratic government is endangered by two unfortunate properties of majority-rule voting: the absence of an electoral equilibrium comparable to the general equilibrium in the economy, and the risk of expropriation of minorities by majorities. Much of...