There are three spheres in human society: culture, economy, and governance. These spheres are generated by three spontaneous orders 1This was developed by F.A. Hayek. James U. Blanchard III and F. A. Hayek, “Exclusive Interview with F.A. Hayek,” Cato Institute Policy Report, May-June 1984. in human society: communication, exchange, and law. In addition to the reproductive instinct, these three instincts are the basis for human society. Each sphere is based on principles derived from these spontaneous orders.

Social institutions grow out of these spheres to serve individuals. The cultural sphere is rooted in the principles of love and knowledge. It values truth, beauty, and goodness. The economic sphere is based on production and exchange. It values price, quality, and efficiency. The sphere of government is rooted in power to enforce the laws and rules. It referees activities in the other spheres. Government should not determine cultural or economic policies because its power will oppress people’s ability to pursue cultural and economic goals.

The evolution of social institutions in three social spheres.