Why it is Good to Have Many Virtual Governments (I)

2 min readMay 13, 2022

A Virtual Government Would Be Nice (5)

Terracotta group of women seated around a well head, 2nd half of 4th century B.C. Greek, Tarentine

Reason one.

If preferences for public goods such as parks (and the tax burden for them) differ from region to region, and by taking an average value, the central government would create inefficiencies in all areas equal to the difference between the average value and the ideal tax burden for the region in question. This is one of the primary rationales for regional decentralization. It would be like a boring policy that is not pleasant for anyone.

Perhaps, in today’s society, we cannot ignore differences in preferences based on “virtual boundaries” such as “hobbies” and “skills” as well as the physical boundary of “regions. If the logic that it is more efficient having a government for each “region” is correct, then governments for each virtual boundary would also be more efficient.

In a highly decentralized world, there would be one government per person. Each person has a different preference for public goods. If we try to match them to an average, waste will result.

Even if we don’t go that far, there are many ways to go about it, such as creating many governments for 200,000 people (where voting anonymity is said to be ensured) or creating a “local government” for each 200,000 people and sharing infrastructure as the aggregation unit for mirror budgets, for example.

This is the first reason why it is better to have virtual governments. The idea is to use the technological possibilities as a way to expand the scope for creating custom budgets.

Now, what’s the second reason?