A Public Choice definition of “The Firm” is the agency that arises from the “incentive-incompatibility problem” of collective choice. This agency, however, is also an organ of political economy. The political economic construct of The Firm is what allows us to tie it to the classical concept of libertarian class theory(note: it is a mistake to try to relate the standard realm of public choice to the old French Laissez Faire model of political economy. To make this relation, you must more or less discard “methodological individualism” from the model of State actors. Hence, most, if not all, traditional public choice scholars will reject “The Firm” outright).
The positive model of “The Firm” allows us to make predictions. For one, the drug war will never peacefully end because the discretionary authority the drug war legitimizes is a core foundational component of The Firm. At best, any legalization efforts will simply result in a FDA, Bristol Myers Squibb, DEA triumvirate. In a real sense, the latter may actually provide the means for greater social control than outright illegality.
If the thing that “The Firm” maximizes is discretionary power or authority, then perhaps “The Matrix” is a better understood cultural descriptor than “The Firm.” However, the use of the term, “The Firm,” is illuminating because it reminds us that the agency in question is at its core a politically economic one. The Firm is the (protectionist) coordinated arena where the “competition” of capitalism takes place. It is the “market setter.”
As with “The Matrix,” it may be the case that the only way to fully understand “The Firm” is to see it for yourself. So below, I have posted a link from the recent WikiLeaks file dump. This is actually a publicly available document and not a secret one. But it is captured from the inner correspondence of the global intelligence firm, Stratfor.
The introduction says it all: engineering an efficient international enforcement paradigm of anti-money laundering measures that starts with terrorism and drugs but under a “one-size-fits-all” vein can be effortlessly extended to any unauthorized monetary exchange. The table of contents provides the staggering breadth and scope of The Firm’s coordination.
To those that say “there is no firm,” I say positive science is useless if we do not believe what we see with our own eyes. To those who say “if you don’t like it, leave,” I say it is clear that there is no escaping the jurisdiction of The Firm.