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The Machinery of Freedom THE MACHINERY OF FREEDOM GUIDE TO A RADICAL CAPITALISM THIRD EDITION David Friedman Chapter 15, ‘Sell the Streets’, copyright ©1970 by Human Events, Inc. Reprinted by permission. William Butler Yeats’s poem ‘The Great Day’ reprinted with permission of Macmillan Publishing Co., Inc., from Collected Poems by William Butler Yeats, copyright 1940 by Georgie Yeats, renewed 1968 by Bertha Georgie Yeats, Michael Butler Yeats, and Anne Yeats. Also reprinted by permission of M. B. Yeats, Anne Yeats, and the Macmillan Co. of London and Basingstoke. © 2014 by David D. Friedman, Third Edition First Print edition, © 1973 First Print Edition Revised, © 1978 Second Print Edition, © 1989 Cover by David Aiello To enquire about licensing rights to this work, please contact Writers’ Representatives LLC, New York, NY 10011 All Rights Reserved This book is dedicated to Milton Friedman Friedrich Hayek Robert A. Heinlein, from whom I learned and to Robert M. Schuchman, who might have written it better Capitalism is the best. It's free enterprise. Barter. Gimbels, if I get really rank with the clerk, 'Well I don't like this', how I can resolve it? If it really gets ridiculous, I go, 'Frig it, man, I walk.' What can this guy do at Gimbels, even if he was the president of Gimbels? He can always reject me from that store, but I can always go to Macy's. He can't really hurt me. Communism is like one big phone company. Government control, man. And if I get too rank with that phone company, where can I go? I'll end up like a schmuck with a dixie cup on a thread. LENNY BRUCE Why can't you see? We just want to be free To have our homes and families And live our lives as we please. DANA ROHRABACHER WEST COAST LIBERTARIAN TROUBADOUR [And, much later, Republican Congressman] ———————————————————————————— Contents Preface To The First Edition .................................................................. vii Preface To The Second Edition .............................................................. ix Preface To The Third Edition ................................................................. xi Acknowledgements ..............................................................................xii Introduction ......................................................................................... xiii I. IN DEFENSE OF PROPERTY ............................................................. 3 1. In Defense Of Property ....................................................................... 3 2. A Necessary Digression .................................................................... 12 3. Love Is Not Enough ........................................................................... 14 Interlude .............................................................................................. 18 4. Robin Hood Sells Out ....................................................................... 20 5. The Rich Get Richer And The Poor Get Richer ................................... 24 6. Monopoly I: How To Lose Your Shirt ................................................. 29 7. Monopoly II: State Monopoly For Fun And Profit ............................. 37 8. Exploitation And Interest ................................................................. 44 9. I Don't Need Nothing ....................................................................... 47 II. LIBERTARIAN GRAB BAG ............................................................ 51 10. Sell The Schools .............................................................................. 53 11. A Radical Critique Of American Universities ................................... 58 12. The Impossibility Of A University .................................................... 61 13. Adam Smith U. ............................................................................... 63 14. Open The Gates .............................................................................. 67 15. Sell The Streets............................................................................... 70 16. 99 And 44/100ths Percent Built ...................................................... 73 17. A First Step ..................................................................................... 75 18. Counterattack ................................................................................ 78 19. Might Have Been ............................................................................ 81 20. Is William F. Buckley A Contagious Disease? ................................... 83 21. It’s My Life ..................................................................................... 86 22. The Rights Of Youth ........................................................................ 90 23. Creeping Capitalism ....................................................................... 92 24. If You Want It, Buy It ...................................................................... 95 25. Scarce Means Finite ....................................................................... 97 26. Pollution ........................................................................................ 99 ———————————— CONTENTS ———————————– v 27. Buckshot For A Socialist Friend ..................................................... 101 III. ANARCHY IS NOT CHAOS ......................................................... 105 28. What Is Anarchy? What Is Government? ...................................... 107 29. Police, Courts, And Laws—On The Market .................................... 110 30. The Stability Problem ................................................................... 117 31. Is Anarcho-Capitalism Libertarian? ............................................... 123 32. And, As A Free Bonus ................................................................... 127 33. Socialism, Limited Government, Anarchy, And Bikinis .................. 129 34. National Defense: The Hard Problem ........................................... 131 35. In Which Prediction Is Reduced To Speculation ............................ 140 36. Why Anarchy? .............................................................................. 142 37. Revolution Is The Hell Of It ........................................................... 145 38. The Economics Of Theft Or The Nonexistence Of The Ruling Class 148 39. The Right Side Of The Public Good Trap ........................................ 152 40. How To Get There From Here ....................................................... 156 Postscript For Perfectionists ............................................................... 159 IV. FOR LIBERTARIANS: AN EXPANDED POSTSCRIPT ..................... 161 41. Problems ...................................................................................... 163 42. Where I Stand .............................................................................. 173 43. Answers: The Economic Analysis Of Law....................................... 179 44. Private Law Enforcement, Medieval Iceland, And Libertarianism .. 197 45. Is There A Libertarian Foreign Policy? ........................................... 205 46. The Market For Money ................................................................. 215 47. Anarchist Politics: Concerning The Libertarian Party ..................... 222 48. G. K. Chesterton—An Author Review ........................................... 226 V. FURTHER THOUGHTS ............................................................... 233 49. The First Legal System .................................................................. 235 50. Anarcho-Capitalism: The Kindergarten Version ............................ 239 51. Bargaining Into Anarchic Order .................................................... 243 52. A Positive Account Of Rights ........................................................ 248 53. Market Failure: An Argument For And Against Government ......... 256 54. Anarchy And Efficient Law ............................................................ 262 55. Default Rules, Economies Of Scale, And The Stability Problem ..... 268 56. The Hard Problem: Part II ............................................................. 272 57. Initial Appropriation—A Brief Venture Into Moral Philosophy ...... 278 58. Welfare And Immigration—The Other Half Of The Argument ....... 283 vi ——————————–– CONTENTS —————————–——— VI. NEW STUFF ............................................................................. 285 59. Problems With Ayn Rand’s Derivation Of Ought From Is ............... 287 60. The Economics Of Virtue And Vice ................................................ 291 61. An Argument I Lost: Where My Moral Philosophy Comes From .... 296 62. Capitalist Trucks ........................................................................... 300 63. The Conservative Mistake ............................................................ 303 64. The Misuse Of Externality Arguments ........................................... 305 65. Unschooling: A Libertarian Approach To Children ......................... 311 66. Welcome To The Future ............................................................... 319 Appendix I: Other Works Of Mine ......................................................... 327 Appendix II: My Competition ................................................................ 330 Appendix III: Some Numbers ................................................................. 353 INDEX .................................................................................................. 356 ———–————————————————–———————— PREFACE
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