APMason comments on Thoughts on moral intuitions - Less Wrong
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Remember that "enforcing contracts" could mean two things. It could mean that the government steps in and makes the parties do what they said they would - it keeps whipping them until they follow through. It could also mean punishing the parties for damage done on the other end when they breach the contract. For example, in a world in which prostitution is legal, X proposes to pay Y for sex. Y accepts. X hands over the money. Y refuses to have sex with X. The horrific version of this is the government comes in and "enforces" the contract... by holding down Y and, well, yeah. The alternative is the government comes in, sees that Y has taken money from X by fraud, and punishes Y the same way it would punish any other thief. The second option is, I think, both more intuitive and less massively disturbing.