9. Describing Agency Problems in Serfdom, Employment and Entrepreneurship

"We expect increasing numbers of low-income persons in Western countries who previously would have depended upon transfer payments from the state to affiliate with wealthy households as retainers" - Davidson & Rees Mogg, The Sovereign Individual

This quote made me think a lot about the relationship of medieval serfdom, current employment and the possibly toxic dynamic between venture capitalist and entrepreneur. Let's take them one at a time.

Serfdom

First, serfdom. Serfs tilled the land in exchange for protection from their lords. By delivering a significant portion of the fruits and labour to the house of their lords, they were offered protection in return. The power dynamic was one of extreme inequality, but a necessary engagement for the serfs, who needed such a contract to protect against significant downside risks like drought or famine. The lord's granaries and walled fortress would be the only thing that stood between the serf and death from starvation or violence. There is no ag…