Rule of Law

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Rule of law brings order and stability to society. Ordered conditions operate in an organized and predictable way. Stable conditions exist when the features of orderliness continue uninterrupted. Living in a society that is ordered and stable makes living less stressful than living in one that is unordered and unstable.

Predictability supports many useful institutions and traditions. For example, rule of law makes schools possible. Rule of law brings order and stability to the collecting of taxes. Taxes make possible roads, bridges, hospitals and schools. With schools we have an educated society. Education raises the standard of living for the individual. When many are educated the entire society enjoys a higher standard of living.

Banking too benefits from the order and stability created by the rule of law. When the regulations governing banks are ordered and stable, bankers know what to count on in the future. They can make plans. Successful plans will allow the banks to earn profits. Because banks are profitable, they can lend money. Lending means entrepreneurs can borrow start-up money and people can borrow money to buy homes.