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Free Liberal: Coordinating towards higher values

Free Liberal

Coordinating towards higher values

Questioning Anarcho-Capitalism

By Joseph Newhard

Anarcho-capitalism is a politico-economic philosophy which rejects the traditional state, as defined by Max Weber, as inconsistent with the natural rights of man. Repudiating the legitimacy of the state as a compulsory, territorial monopoly on violence, anarcho-capitalists instead advocate a natural order in which law and protection are provided by privately owned security agencies resembling insurance companies. These agencies, lacking the power to tax, will instead compete against each other for customers on the free market.

In his book Democracy--The God That Failed, economist Hans-Hermann Hoppe contends, perhaps rightly so, that states as compulsory, territorial monopolies on violence with the power of taxation are inconsistent with the principles of classical liberalism, viz: self-autonomy, liberty, and property rights. Rather than being a protector of these inviolable natural rights, he argues that the state necessarily represents a powerful, systemizing aggressor against them.

However, there are multiple objections to anarcho-capitalism, even from libertarians. Typically, critics question its workability, claiming that there will be an underproduction of security, that gang violence and organized crime will rise, and that society will become engulfed in chaos. Hoppe dismisses the notion that security and law enforcement would be underproduced in such a society, but concedes that thugs and gangs would arise which would constantly seek to terrorize individuals and confiscate their property. Even so, he insists that the emergence of private security agencies would repel and punish these outlaws.

In other words, private security agencies are expected to emerge despite the presence of gang warfare and the systematic aggression of tyrants and criminals alike. I believe that this notion is false, and is demonstrably so on empirical grounds.

Consider the following: Anarcho-capitalism represents a social order in which no one rules de jure, though most of us can perceive that even in such a society, there will still be those who actively seek to gain power over others. Since all aggression represents the violent usurpation of life, liberty and property, all aggressors make an implied claim to be monopolists on violence with regard another's property, whether they are street thugs or elected leaders. In exemplifying the motto "might makes right," they demand unequivocal compliance and rely on superior force to confiscate that which is not theirs.

Yet the belligerent expeditions of thugs, if we accept anarcho-capitalist theory, can not constitute a hindrance to anarcho-capitalism, as embodied by the emergence of private security agencies. Thus, I insist that the prerequisites for the emergence of anarcho-capitalism already exist within the American society, and that the fact that it has not yet manifested itself represents a serious flaw in anarcho-capitalist theory.

When one refers to the emergence of anarcho-capitalism, he is of course referring to anarcho-capitalism's physical manifestation in the form of autonomous, privately-owned security agencies willing and able to defend clients against all of society's aggressors. Nothing out of the ordinary is necessary for these agencies to emerge, and they could begin to appear today if some entrepreneur willed it so. So in a sense, we already live under a de facto state of anarcho-capitalism, and owe it to ourselves to question why such private agencies have not appeared to defend us against the parasitic thugs and tyrants that infect our society.

Firstly, we suffer the sustained encroachments of a ponderous aggressor known as the federal government, with no recourse or defense against its will. It seizes an enormous chunk of the GNP, inhibits economic growth, capriciously regulates every aspect of our lives, wages wars abroad, and continually invades our privacy with unapologetic impunity. The United States government is in fact the greatest aggressor in the entire country, responsible for the subjection and impoverishment of millions.

Additionally, while enduring its insatiable fiscal appetite, its burgeoning lust for power, and its unending quest for ever greater influence over our lives, it is still unable to direct its massive budget towards quelling historically high crime rates. The law-abiding citizens are literally pillaged daily by the bloated Leviathan that has been charged with the duty of protecting them, and by common street thugs who neither respect nor deserve civilization.

The question that must be asked in this situation is, where are the competing defense agencies ready to protect us from aggressors, and especially from Leviathan? Of course, there are private security guards who can be hired in instances when protection is required beyond the government's capabilities, but they operate only with the government's permission and according to its rules. Where are the private security agencies that anarcho-capitalists expect to arise naturally, which will not only recognize Leviathan as illegitimate, but also offer consumers protection from its powers? They do not exist, so where are they?

One possible explanation for this conspicuous absence might be that anarcho-capitalism can not emerge within the territorial claims of aggressors, including states such as ours. Obviously, states have an incentive to forbid the emergence of competitors to their monopolist claims, who would thus threaten their survival. But as long as there are criminals, dictators and politicians, there will always be those who look to maintain dominance over particular territories, seeking to be monopolists on violence therein. If the emergence of anarcho-capitalism must be preceded by the disappearance of the territorial thugs and despots of the world, it will never appear, because in all reality, these rogues must be regarded as natural and unavoidable constituents of society which can be fought but never eliminated.

It does seem to me that it is in fact the existence of government that is responsible for the absence of anarcho-capitalist security agencies in society. But suggesting that government must be eliminated before these agencies can emerge is to relinquish any claim to their representing a natural order.

Consider that socialism requires the initiation of physical force against individuals for its implementation because it represents a negation of naturally arising capitalist phenomena: wages, prices, and the private acquisition of production goods. On the other hand, capitalism emerges as a result of man's nature and can be negated only with violence. Socialism requires aggressive force to be implemented, while capitalism merely requires defensive force to be maintained.

But anarcho-capitalism, if it truly represents a "natural order" consonant with the nature of man, should not require any initiation of force to manifest itself. Instead, it should emerge naturally, similar to the way money emerges out of the barter system, and regardless of the particular circumstances of a particular government and culture. So where are the private security agencies to defend us against the criminals and tyrants that plague us? Empirically, we have seen that anarcho-capitalism has not emerged except in a few sporadic instances in history, such as medieval Iceland, while countless billions have lived and died under the power of despots. Since anarcho-capitalism has not emerged in America already, but claims to be consistent with man's nature, what changes to our social order could it possibly require?

If anarcho-capitalism can not survive the onslaught of those who oppose it, including territorial monopolists on violence, it will never come into being, let alone last very long. For political philosophers, I suggest that the question shouldn't be whether or not anarcho-capitalism can succeed, but rather, hasn't it already failed?

Joseph Newhard holds degrees in Economics and Political Science from the Ohio State University. He can be reached for comment at objectivistphilosopher [at] hotmail.com.



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