Sonja: Of course the government will enforce contracts. What happens
is that if you break a contract, the aggrieved party will be able to
sue you. They enlist the help of the government (in the person of a
judge), who will order that the terms of the contract be fulfilled. If
you don't pay, the government can seize your assets (within certain
limits) and hand them over to the aggrieved party. If you resist the
seizure of your assests, the government can put you in jail.
Without impartial courts, capitalism is impossible. These don't
neccesarily have to be government courts, they could be councils of
elders, or other traditional sorts of arrangements. But without the
rule of law, enforced by the government/tradition, most financial
transactions become impossible.
=====
Darryl
Think Galactically -- Act Terrestrially
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