If someone was running a private security company in Ancapistan I wonder if they would be tempted to offer a deluxe package which costs ten times as much and offers immunity to minor crimes, or a platinum package which costs even more and shields you from murder investigations.
Would you want to buy security from a company that would let some members of Argumate’s Hypothetical Security Firm not be prosecuted for murdering you?
Probably not, in which case you would have to buy from me! 🙂
Adam and Steve
Adam has an ArguProtect subscription, Steve has a Dia Paying Group plan.
Adam takes Steve’s phone, so Steve contacts Dia, who contacts Adam, who contacts Argu, who contacts Dia back.
ArguProtect and the Dia Paying Group agree that the facts of the matter are that Adam took Steve’s phone (Maybe with some Arbitrator involved first if the facts are not entirely clear). ArguProtect takes the phone from Adam (Who doesn’t have anybody to protect him from ArguProtect) and gives it to the Dia Paying Group, along with some fee to compensate Dia for their time and Steve for his trouble. Then they hike up Adam’s rate to compensate for their trouble and also to cover future fees.
But Adam likes stealing phones, so he upgrades to the ArguProtect Platinum Plan that doesn’t recognize “theft” as a crime, and will in fact protect him if others try to repossess their goods from him.
Adam steals Steve’s phone again. Steve talks to Dia. Dia talks to Adam. Adam talks to ArguProtect, who calls up Dia and says “Not only will we not give the phone back, we will protect Adam if you try to repossess it yourselves.
The Dia Paying Group replies: “Are you real right now? You want open warfare over a phone?” and ArguProtect replies back “Oh God no that would be the worst. How much would you charge to forget the whole matter?”
Dia contacts Steve, who says he wants back his god damn phone, there’s no money equivalence, those were the only pictures of his child’s first birthday.
Dia says “No money equivalence? Are you sure you didn’t mean ‘no reasonable money equivalence’ because we’re thinking $20 million.”
Steve says “Ok yeah that’ll buy a lot of Birthday Cake and set the kid up for college. OK. $20 million.”
Dia contacts back ArguProtect and says “$20 million. Also your business plan is terrible.”
ArguProtect pays $20 million plus a 10% fee for Dia’s trouble, then pass the cost on to their customers, and by “their customers” I mean Adam. Enjoy your $22 million phone Adam.
Obviously a ridiculous example because the numbers are made up, but what you would end up with would be that, effectively, Adam stops carrying a credit card and instead just takes things, which is super convenient I’m sure, but he pays for that convenience by everything costing more than if he just used a credit card because his platinum subscription, in order to make sense from ArguProtects point of view, has to cover the return fees plus make a profit, and the return fees are higher than what Adam would’ve had to pay with a credit card because they’re the full price, plus some extra to cover the outrage over having your things stolen.
The Platinum (Commercial) Plan is probably cheaper than the Platinum (Private) Plan because the Commercial manager can contact businesses ahead of time and agree to pay Adam’s bills if he takes from them – negotiating from a fairly even position before any crime has taken place – while the Private manager needs to negotiate everything after the fact and also has to contend with people angry that their rights have been violated and the fact that some of the things stolen are more uniquely difficult to replace with just money.
Compare, if you will, with a driver who enjoys speeding and just puts a large sack of cash in a police station (the “Platinum Plan”)- every time the driver is caught, the fine is taken out of the sack, and the driver occasionally returns to the station to re-fill the sack. Sure, the driver is paying in advance to avoid punishment but it’s the same money being lost either way.