What is new about the Buchanan-Tullock school is its theory of the State and political (as contrasted to economic) action. However, this innovation is patently false.
Buchanan and Tullock think the State is essentially a voluntary institution, on a par with private business firms. They claim that 'the market and the State are both devices through which cooperation is organized and made possible.' (Calculus of Consent, p. 19) And since the State is like a firm, Buchanan then concludes in his Limits of Liberty, whatever happens in politics, every status quo, 'must be evaluated as if it were legitimate contractually.'
