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"Governance creates markets"

I am not sure this is necessarily the case, at least historically. We have good evidence of long distance trade from the Stone Age, and even some Neanderthal sites contain stones whose origin can be traced to distant regions (over 100 km, IIRC, which is far away in a primordial roadless countryside).

I would agree that markets cannot grow beyond a certain size without a government, though.





It might be better to say that governance regulates and stabilizes markets. Keeping us from regression to the natural market of the jungle.

Presence of trade is not necessarily a market in the modern sense.



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