Anarcho-Capitalism

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generally accepted, and which the courts would pledge themselves to follow.”[10] This pact would recognize self- ownership and the non-aggression principle (NAP), although methods of enforcement vary. Anarcho-capitalists are to be distinguished from minarchists, who advocate a small government (often referred to as a 'night-watchman state') limited to the function of individual protection, and from social anarchists who seek to prohibit or regulate the accumulation of property and the ﬂow of capital.

Flag used by the Swedish AnarkoKapitalistisk Front[1] 1 Philosophy

Anarcho-capitalism (anarcho referring to the lack of a 1.1 Ethics state and capitalism referring to the corresponding liber- ation of capital, also referred to as free-market anar- Anarcho-capitalists argue for a society based on the vol- chism,[2] market anarchism,[3] private-property an- untary trade of private property and services (in sum, all archism,[4] libertarian anarchism,[5] among others (see relationships not caused by threats or violence, includ- below) and the short term "ancap") is a political philoso- ing exchanges of money, consumer goods, land, and cap- phy that advocates the elimination of the state - which ital goods) in order to minimize conflict while maximiz- distorts market signals, breeds corruption, and institu- ing individual liberty and prosperity. However, they also tionalizes monopoly - in favor of individual sovereignty, recognize charity and communal arrangements as part of absence of invasive private property policies and open the same voluntary ethic.[11] Though anarcho-capitalists markets (laissez-faire capitalism). Anarcho-capitalists are known for asserting a right to private (individualized believe that in the absence of statute (law by decree or or joint non-public) property, some propose that non- legislation), society would improve itself through the dis- state public or community property can also exist in an cipline of the free market (or what its proponents describe anarcho-capitalist society.[12] For them, what is impor- as a "voluntary society").[6][7] In an anarcho-capitalist so- tant is that it is acquired and transferred without help or ciety, law enforcement, courts, and all other security ser- hindrance from the compulsory state. Anarcho-capitalist vices would be operated by privately funded competi- libertarians believe that the only just, and/or most eco- tors rather than centrally through compulsory taxation. nomically beneficial, way to acquire property is through Money, along with all other goods and services, would voluntary trade, gift, or labor-based original appropria- be privately and competitively provided in an open mar- tion, rather than through aggression or fraud.[13] ket. Therefore, personal and economic activities under Anarcho-capitalists see free-market capitalism as the ba- anarcho-capitalism would be regulated by victim-based sis for a free and prosperous society. Murray Rothbard dispute resolution organizations under tort and contract said that the difference between free-market capitalism law, rather than by statute through centrally determined [8] and "state capitalism" is the difference between “peace- punishment under political monopolies. ful, voluntary exchange” and a collusive partnership be- Various theorists have espoused legal philosophies simi- tween business and government that uses coercion to sub- lar to anarcho-capitalism. The first person to use the term, vert the free market.[14] (Rothbard is credited with coin- however, was Murray Rothbard, who in the mid-20th ing the term “Anarcho-capitalism”).[15][16] “Capitalism,” century synthesized elements from the Austrian School as anarcho-capitalists employ the term, is not to be con- of economics, classical liberalism, and 19th-century fused with state monopoly capitalism, crony capitalism, American individualist anarchists Lysander Spooner and corporatism, or contemporary mixed economies, wherein Benjamin Tucker (while rejecting their labor theory of market incentives and disincentives may be altered by value and the norms they derived from it).[9] A Rothbar- state action.[17] They therefore reject the state, seeing dian anarcho-capitalist society would operate under a mu- it as an entity which steals property (through taxation tually agreed-upon libertarian “legal code which would be and expropriation), initiates aggression, has a compulsory

1 2 1 PHILOSOPHY monopoly on the use of force, uses its coercive powers to territory, and all of the other depredations and benefit some businesses and individuals at the expense of coercions that are built upon these twin foci of others, creates artificial monopolies, restricts trade, and invasions of individual rights. restricts personal freedoms via drug laws, compulsory ed- —Rothbard in Society and State ucation, conscription, laws on food and morality, and the like. Many anarchists view capitalism as an inherently While the Friedmanian formulation of anarcho- authoritarian and hierarchical system, and seek the ex- capitalism is robust to the presence of violence, and in propriation of private property.[18] There is disagreement fact assumes some degree of violence will occur,[33] between these left anarchists and laissez-faire anarcho- anarcho-capitalism as formulated by Rothbard and others capitalists,[19] as the former generally rejects anarcho- holds strongly to the central libertarian nonaggression capitalism as a form of anarchism and considers anarcho- axiom: capitalism an oxymoron,[20][21][22] while the latter holds that such expropriation is counterproductive to order, and [...] The basic axiom of libertarian politi- [8] would require a state. On the Nolan chart, anarcho- cal theory holds that every man is a self owner, capitalists are located at the northernmost apex of the lib- having absolute jurisdiction over his own body. ertarian quadrant - since they reject state involvement in In effect, this means that no one else may justly [23] both economic and personal affairs. invade, or aggress against, another’s person. Laissez-faire anarchists argue that the state is an initiation It follows then that each person justly owns of force because force can be used against those who have whatever previously unowned resources he ap- not stolen private property, vandalized private property, propriates or “mixes his labor with”. From assaulted anyone, or committed fraud. Many also argue these twin axioms – self-ownership and “home- that subsidized monopolies tend to be corrupt and inef- steading” – stem the justification for the en- ficient. Anarchist theorist Rothbard argued that all gov- tire system of property rights titles in a free- ernment services, including defense, are inefficient be- market society. This system establishes the cause they lack a market-based pricing mechanism regu- right of every man to his own person, the right lated by the voluntary decisions of consumers purchasing of donation, of bequest (and, concomitantly, services that fulfill their highest-priority needs and by in- the right to receive the bequest or inheritance), vestors seeking the most profitable enterprises to invest and the right of contractual exchange of prop- in.[24] Many anarchists also argue that private defense and erty titles.[34] court agencies would have to have a good reputation in order to stay in business. Furthermore, Linda and Morris Rothbard’s defense of the self-ownership principle stems Tannehill argue that no coercive monopoly of force can from what he believed to be his falsification of all other arise on a truly free market and that a government’s citi- alternatives, namely that either a group of people can zenry can't desert them in favor of a competent protection own another group of people, or the other alternative, [25] and defense agency. that no single person has full ownership over one’s self. Rothbard bases his philosophy on natural law grounds Rothbard dismisses these two cases on the basis that and also provides economic explanations of why he thinks they cannot result in a universal ethic, i.e., a just natu- anarcho-capitalism is preferable on pragmatic grounds as ral law that can govern all people, independent of place well. David D. Friedman says he is not an absolutist rights and time. The only alternative that remains to Rothbard is theorist but is also “not a utilitarian", however, he does self-ownership, which he believes is both axiomatic and believe that “utilitarian arguments are usually the best way universal.[35] [26] to defend libertarian views”. Peter Leeson argues that In general, the nonaggression axiom can be said to be a “the case for anarchy derives its strength from empirical prohibition against the initiation of force, or the threat of [27] evidence, not theory.” Hans-Hermann Hoppe, mean- force, against persons (i.e., direct violence, assault, mur- while, uses "argumentation ethics" for his foundation of der) or property (i.e., fraud, burglary, theft, taxation).[36] [28] “private property anarchism”, which is closer to Roth- The initiation of force is usually referred to as aggression bard’s natural law approach. or coercion. The difference between anarcho-capitalists and other libertarians is largely one of the degree to I define anarchist society as one where which they take this axiom. Minarchist libertarians, such there is no legal possibility for coercive as most people involved in libertarian political parties, aggression against the person or property of would retain the state in some smaller and less invasive any individual. Anarchists oppose the State form, retaining at the very least public police, courts and because it has its very being in such aggression, military; others, however, might give further allowance namely, the expropriation of private property for other government programs. In contrast, anarcho- through taxation, the coercive exclusion of capitalists reject any level of state intervention, defining other providers of defense service from its the state as a coercive monopoly and, as the only entity in 1.2 Property 3

human society that derives its income from legal aggres- labor it may then only exchange hands legitimately by sion, an entity that inherently violates the central axiom trade or gift; forced transfers are considered illegitimate. of libertarianism.[35] Original appropriation allows an individual to claim any Some anarcho-capitalists, such as Rothbard, accept the never-before used resources, including land, and by im- nonaggression axiom on an intrinsic moral or natural law proving or otherwise using it, own it with the same “abso- basis. It is in terms of the non-aggression principle that lute right” as his own body. According to Rothbard, prop- Rothbard defined anarchism; he defined “anarchism as a erty can only come about through labor, therefore original system which provides no legal sanction for such aggres- appropriation of land is not legitimate by merely claiming it or building a fence around it; it is only by using land – sion ['against person and property']" and said that “what anarchism proposes to do, then, is to abolish the State, by mixing one’s labor with it – that original appropriation is legitimized: “Any attempt to claim a new resource that i.e. to abolish the regularized institution of aggressive coercion.”[37] In an interview published in the libertar- someone does not use would have to be considered invasive of the property right of whoever the first user will ian journal New Banner, Rothbard said that “capitalism is the fullest expression of anarchism, and anarchism is turn out to be.” Rothbard argues that the resource need not continue to be used in order for it to be the person’s the fullest expression of capitalism.”[38] property, “for once his labor is mixed with the natural resource, it remains his owned land. His labor has been 1.2 Property irretrievably mixed with the land, and the land is therefore his or his assigns’ in perpetuity.”[40] As a practical mat- 1.2.1 Private property ter, in terms of the ownership of land, anarcho-capitalists recognize that there are few (if any) parcels of land left Central to Rothbardian anarcho-capitalism are the con- on Earth whose ownership was not at some point in time cepts of self-ownership and original appropriation. obtained in violation of the homestead principle, through seizure by the state or put in private hands with the assis- Everyone is the proper owner of his own tance of the state. Rothbard says, physical body as well as of all places and nature-given goods that he occupies and puts It is not enough to call simply for defense of to use by means of his body, provided only “the rights of private property"; there must be that no one else has already occupied or used an adequate theory of justice in property rights, the same places and goods before him. This else any property that some State once decreed ownership of “originally appropriated” places to be “private” must now be defended by liber- and goods by a person implies his right to use tarians, no matter how unjust the procedure or and transform these places and goods in any how mischievous its consequences.[30] way he sees fit, provided only that he does not change thereby uninvitedly the physical in- Rothbard says in “Justice and Property Right” that “any tegrity of places and goods originally appropri- identifiable owner (the original victim of theft or his heir) ated by another person. In particular, once a must be accorded his property.” In the case of slavery, place or good has been first appropriated by, in Rothbard says that in many cases “the old plantations and John Locke’s phrase, 'mixing one’s labor' with the heirs and descendants of the former slaves can be it, ownership in such places and goods can be identified, and the reparations can become highly specific acquired only by means of a voluntary – con- indeed.” He believes slaves rightfully own any land they tractual – transfer of its property title from a were forced to work on under the “homestead principle”. previous to a later owner.[39] If property is held by the state, Rothbard advocates its confiscation and return to the private sector: “any prop- This is the root of anarcho-capitalist property rights, and erty in the hands of the State is in the hands of thieves, where they differ from collectivist forms of anarchism and should be liberated as quickly as possible.” For ex- such as anarcho-communism where the means of produc- ample, he proposes that State universities be seized by tion are controlled by the whole community and the prod- the students and faculty under the homestead principle. uct of labor is collectivized in a pool of goods and dis- Rothbard also supports expropriation of nominally “pri- tributed “according to need” (which is to be determined vate property” if it is the result of state-initiated force, and enforced collectively). Anarcho-capitalists advocate such as businesses who receive grants and subsidies. He individual or joint (i.e. private) ownership of the means proposes that businesses who receive at least 50% of their of production and the product of labor regardless of what funding from the state be confiscated by the workers. He the individual “needs” or does not “need”. As Rothbard says, “What we libertarians object to, then, is not gov- says, “if every man has the right to own his own body and ernment per se but crime, what we object to is unjust if he must use and transform material natural objects in or criminal property titles; what we are for is not “pri- order to survive, then he has the right to own the product vate” property per se but just, innocent, non-criminal pri- that he has made.” After property is transformed through vate property.” Likewise, Karl Hess says, “libertarianism 4 1 PHILOSOPHY wants to advance principles of property but that it in no considered next to impossible. Established ocean routes, way wishes to defend, willy nilly, all property which now for example, are generally seen as unavailable for private is called private... Much of that property is stolen. Much appropriation. is of dubious title. All of it is deeply intertwined with an [41] Anarcho-capitalists tend to concur with free-market en- immoral, coercive state system.” By accepting an ax- vironmentalists regarding the environmentally destruc- iomatic definition of private property and property rights, tive tendencies of the state and other communal arrange- anarcho-capitalists deny the legitimacy of a state on prin- ments. Air, water, and land pollution, for example, are ciple: seen as the result of collectivization of ownership. Cen- tral governments generally strike down individual or class For, apart from ruling out as unjustified all action censure of polluters in order to benefit “the many”, activities such as murder, homicide, rape, tres- and legal or economic subsidy of heavy industry is justi- pass, robbery, burglary, theft, and fraud, the fied by many politicians for job creation within a political ethics of private property is also incompati- territory.[8] ble with the existence of a state defined as an agency that possesses a compulsory territorial monopoly of ultimate decision-making (juris- 1.3 Economics diction) and/or the right to tax.[39] The Austrian school of economics argued against the vi- ability of socialism and centrally planned economic pol- 1.2.2 Common property icy. Eugen von Böhm-Bawerk, a colleague of Austrian school founder Carl Menger, wrote one of the first cri- Though anarcho-capitalists assert a right to private prop- tiques of socialism in his treatise The Exploitation Theory erty, some anarcho-capitalists also point out that com- of Socialism-Communism. Later, Friedrich von Hayek mon, i.e. community, property can exist by right in an wrote The Road to Serfdom, which states that a command anarcho-capitalist system. Just as an individual comes economy lacks the information function of market prices, to own that which was unowned by mixing his labor and that central authority over the economy leads to with it or using it regularly, a whole community or so- totalitarianism. Another Austrian economist, Ludwig von ciety can come to own a thing in common by mixing Mises, wrote Human Action, an early exposition of the their labor with it collectively, meaning that no individual method he called Praxeology. may appropriate it as his own. This may apply to roads, parks, rivers, and portions of oceans.[12] Anarchist theorist Roderick Long gives the following example:

Consider a village near a lake. It is common for the villagers to walk down to the lake to go ﬁshing. In the early days of the community it’s hard to get to the lake because of all the bushes and fallen branches in the way. But over time the way is cleared and a path forms – not through any coordinated eﬀorts, but simply as a result of all the individuals walking by that way day after day. The cleared path is the product of labor – not any individual’s labor, but all of them together. If one villager decided to take advantage of the now-created path by setting up a gate and charging tolls, he would be violating the collective property right that the villagers together have earned.[42]

Nevertheless, since property that is owned collectively tends to lose the level of accountability found in individual ownership to the extent of the number of owners – and make consensus regarding property use and maintenance decisions proportionately less likely, anarcho-capitalists Murray Rothbard (1926–95). generally distrust and seek to avoid intentional communal arrangements. Privatization, decentralization, and indi- Rothbard attempted to meld Austrian economics with vidualization are often anarcho-capitalist goals. But in classical liberalism and individualist anarchism. He some cases, they not only provide a challenge, but are wrote his first paper advocating “private property an- 1.5 Law and order and the use of violence 5 archism” in 1949, and later came up with the alter- his or her own faith. Individuals are free to enter into or native name anarcho-capitalism. He was probably the reject contractual agreements as they see fit. first to use libertarian in its current (U.S.) pro-capitalist Rothbard points out that corporations would exist in a sense. His academic training was in economics, but free society, as they are simply the pooling of capital. his writings also refer to history and political philoso- He says limited liability for corporations could also exist phy. When young, he considered himself part of the Old through contract: “Corporations are not at all monopo- Right, an anti-statist and anti-interventionist branch of the listic privileges; they are free associations of individuals Republican party. In the late 1950s, he was briefly in- pooling their capital. On the purely free market, such volved with Ayn Rand, but later had a falling out. When men would simply announce to their creditors that their interventionist cold warriors of the National Review, such liability is limited to the capital specifically invested in as William F. Buckley, Jr., gained influence in the Repub- the corporation....”[40] lican party in the 1950s, Rothbard quit that group and briefly associated himself with left-wing antiwar groups. Corporations created in this way would not, however, He believed that the cold warriors were more indebted be able to replicate the limit on liabilities arising non- in theory to the left and imperialist progressives, espe- contractually, such as liability in tort for environmental cially with respect to Trotskyist theory.[43] Rothbard ini- disasters or personal injury, which corporations currently tially opposed the founding of the Libertarian Party but enjoy. Rothbard himself acknowledges that “limited li- joined in 1973 and became one of its leading activists. ability for torts is the illegitimate conferring of a special privilege”[44] There are limits to the right to contract under some inter- 1.4 Contractual society pretations of anarcho-capitalism. Rothbard himself argues that the right to contract is based in inalienable human rights[35] and therefore any contract that implicitly violates those rights can be voided at will, which would, for instance, prevent a person from permanently selling himself or herself into unindentured slavery. Other in- terpretations conclude that banning such contracts would in itself be an unacceptably invasive interference in the right to contract.[45] Included in the right of contract is the right to contract oneself out for employment by others. Unlike anarcho- communists, anarcho-capitalists support the liberty of individuals to be self-employed or to contract to be employees of others, whichever they prefer and the freedom to pay and receive wages. Some anarcho-capitalists prefer to see self-employment prevail over wage labor. A postage stamp celebrating the thousandth anniversary of the For example, David Friedman has expressed preference Icelandic parliament. According to a theory associated with the for a society where “almost everyone is self-employed” economist David Friedman, medieval Icelandic society had some and “instead of corporations there are large groups of en- features of anarcho-capitalism. Chieftaincies could be bought trepreneurs related by trade, not authority. Each sells not and sold, and were not geographical monopolies; individuals his time, but what his time produces.”[46] Others, such as could voluntarily choose membership in any chieftain’s clan. Rothbard, do not express a preference either way but jus- tify employment as a natural occurrence in a free market The society envisioned by anarcho-capitalists has been that is not immoral in any way. called the Contractual Society – "... a society based purely on voluntary action, entirely unhampered by violence or [40] threats of violence.” – in which anarcho-capitalists as- 1.5 Law and order and the use of violence sert the system relies on voluntary agreements (contracts) between individuals as the legal framework. It is difficult Different anarcho-capitalists propose different forms of to predict precisely what the particulars of this society anarcho-capitalism, and one area of disagreement is in will look like because of the details and complexities of the area of law. Morris and Linda Tannehill, in The contracts. Market for Liberty, object to any statutory law whatso- One particular ramification is that transfer of property ever. They argue that all one has to do is ask if one is and services must be considered voluntarily on the part of aggressing against another (see tort and contract law) in both parties. No external entities can force an individual order to decide if an act is right or wrong.[47] However, to accept or deny a particular transaction. An employer Rothbard, while also supporting a natural prohibition on might offer insurance and death benefits to same-sex cou- force and fraud, supports the establishment of a mutually ples; another might refuse to recognize any union outside agreed-upon centralized libertarian legal code which pri- 6 1 PHILOSOPHY

vate courts would pledge to follow. agencies. This arrangement can be compared to the con- Unlike both the Tannehills and Rothbard who see an tractual nature of the Goðorð system employed in the ideological commonality of ethics and morality as a re- Icelandic Commonwealth by competing chieftains. quirement, David Friedman proposes that “the systems of Edward Stringham argues that private adjudication of law will be produced for profit on the open market, just disputes could enable the market to internalize externali- as books and bras are produced today. There could be ties and provide services that customers desire.[57][58] competition among different brands of law, just as there is competition among different brands of cars.”[48] Fried- man says whether this would lead to a libertarian society “remains to be proven.” He says it is a possibility that very unlibertarian laws may result, such as laws against drugs. But, he thinks this would be rare. He reasons that “if the value of a law to its supporters is less than its cost to its victims, that law...will not survive in an anarcho-capitalist society.”[49] Anarcho-capitalists only accept collective defense of individual liberty (i.e., courts, military or police forces) in- sofar as such groups are formed and paid for on an explic- itly voluntary basis. But, their complaint is not just that the state’s defensive services are funded by taxation but Murray Rothbard admired the American Revolutionary War and that the state assumes it is the only legitimate practitioner believed it is the only U.S. war that can be justified. of physical force. That is, it forcibly prevents the private sector from providing comprehensive security, such as a Like classical liberalism, and unlike anarcho-pacifism, police, judicial, and prison systems to protect individuals anarcho-capitalism permits the use of force, as long as it from aggressors. Anarcho-capitalists believe that there is in the defense of persons or property. The permissible is nothing morally superior about the state which would extent of this defensive use of force is an arguable point grant it, but not private individuals, a right to use phys- among anarcho-capitalists. Retributive justice, meaning ical force to restrain aggressors. Also, if competition in retaliatory force, is often a component of the contracts security provision were allowed to exist, prices would be imagined for an anarcho-capitalist society. Some believe lower and services would be better according to anarcho- prisons or indentured servitude would be justifiable insti- capitalists. According to Molinari, “Under a regime of tutions to deal with those who violate anarcho-capitalist liberty, the natural organization of the security industry property relations, while others believe exile or forced would not be different from that of other industries.”[50] restitution are sufficient.[59] Proponents point out that private systems of justice and Bruce L. Benson argues that legal codes may impose defense already exist, naturally forming where the mar- punitive damages for intentional torts in the interest of ket is allowed to compensate for the failure of the state: deterring crime. For instance, a thief who breaks into a private arbitration, security guards, neighborhood watch house by picking a lock and is caught before taking any- [51][52][53][54] groups, and so on. These private courts and thing would still owe the victim for violating the sanc- police are sometimes referred to generically as Private tity of his property rights. Benson opines that, despite Defense Agencies (PDAs). the lack of objectively measurable losses in such cases, The defense of those unable to pay for such protection “standardized rules that are generally perceived to be fair might be financed by charitable organizations relying on by members of the community would, in all likelihood, voluntary donation rather than by state institutions rely- be established through precedent, allowing judgments to ing on coercive taxation, or by cooperative self-help by specify payments that are reasonably appropriate for most groups of individuals.[55] criminal offenses.”[60] The Tannehills raise a similar example, noting that a bank robber who had an attack of Subrogation, which allows remuneration for losses and conscience and returned the money would still owe repa- damages to be funded by the aggressors, reduces insur- rations for endangering the employees’ and customers’ ance costs and could operate as a business in itself – con- lives and safety, in addition to the costs of the defense verting victims from paying customers into direct ben- agency answering the teller’s call for help. But the rob- eficiaries. The concept of Restitution Transfer and Re- ber’s loss of reputation would be even more damaging. coupment (RTR) has been explored by freenation theo- Specialized companies would list aggressors so that any- rist John Frederic Kosanke.[56] RTR agencies would em- one wishing to do business with a man could first check ploy bonding agencies, private investigators, private dis- his record. The bank robber would find insurance compa- pute resolution organizations, and private aggressor con- nies listing him as a very poor risk, and other firms would tainment agencies, as required. Instead of having to pay be reluctant to enter into contracts with him.[61] for restitution, victims sell restitution rights to the RTR One difficult application of defensive aggression is the act 7 of revolutionary violence (including anarcho-capitalist anarchists believe capitalism is incompatible with so- revolution) against tyrannical regimes. Many anarcho- cial and economic equality, and therefore do not rec- capitalists admire the American Revolution as the legiti- ognize anarcho-capitalism as an anarchist school of mate act of individuals working together to fight against thought.[66][67][68][69] In particular, they argue that capi- tyrannical restrictions of their liberties. In fact, accord- talist transactions are not voluntary, and that maintaining ing to Rothbard, the American Revolutionary War was the class structure of a capitalist society requires coer- the only war involving the United States that could be cion, which is incompatible with an anarchist society.[63] [62] justified. Some anarcho-capitalists, such as Samuel Murray Rothbard argues that the capitalist system of to- Edward Konkin III, feel that violent revolution is counter- day is, indeed, not properly anarchistic because it so of- productive and prefer voluntary forms of economic seces- ten colludes with the state. According to Rothbard, “what sion to the extent possible. Marx and later writers have done is to lump together two extremely different and even contradictory concepts and actions under the same portmanteau term. These two 2 Branches of anarcho-capitalism contradictory concepts are what I would call 'free-market capitalism' on the one hand, and 'state capitalism' on the The two principal moral approaches to anarcho- other.”[70] “The difference between free-market capital- capitalism differ in regard to whether anarcho-capitalist ism and state capitalism,” writes Rothbard, “is precisely society is justified on deontological or consequentialist the difference between, on the one hand, peaceful, volun- ethics, or both. Natural-law anarcho-capitalism (as tary exchange, and on the other, violent expropriation.” advocated by Rothbard) holds that a universal system He continues, “State capitalism inevitably creates all sorts of rights can be derived from natural law. Some other of problems which become insoluble.”[70] anarcho-capitalists do not rely upon the idea of natural Rothbard maintains that anarcho-capitalism is the only rights, but instead present economic justifications for a true form of anarchism—the only form of anarchism that free-market capitalist society. Such a latter approach has could possibly exist in reality, as, he argues, any other been offered by David D. Friedman in The Machinery form presupposes an authoritarian enforcement of politi- [63] of Freedom. Also unlike other anarcho-capitalists, cal ideology, such as redistribution of private property.[71] most notably Rothbard, Friedman has never tried to deny According to this argument, the free market is simply the theoretical cogency of the neoclassical literature on the natural situation that would result from people be- "market failure", but openly applies the theory to both ing free from authority, and entails the establishment of market and government institutions (see “government all voluntary associations in society: cooperatives, non- failure”) to compare the net result. Nor has he been profit organizations, businesses, etc. Moreover, anarcho- inclined to attack economic efficiency as a normative capitalists, as well as classical liberal minarchists, argue [54] benchmark. that the application of left-wing anarchist ideals would Kosanke sees such a debate as irrelevant since, in the require an authoritarian body of some sort to impose it. absence of statutory law, the non-aggression principle In order to forcefully prevent people from accumulating (NAP) is naturally enforced, because individuals are au- private capital, there would necessarily be a redistributive tomatically held accountable for their actions via tort and organization of some sort which would have the author- contract law. Communities of sovereign individuals nat- ity to, in essence, exact a tax and re-allocate the resulting urally expel aggressors in the same way that ethical busi- resources to a larger group of people. This body would ness practices are naturally required among competing thus inherently have political power and would be nothing businesses that are subject to the discipline of the mar- short of a state. The difference between such an arrange- ketplace. For him, the only thing that needs to be debated ment and an anarcho-capitalist system is precisely the vol- is the nature of the contractual mechanism that abolishes untary nature of organization within anarcho-capitalism the state, or prevents it from coming into existence where contrasted with a centralized ideology and a paired en- new communities form.[8] forcement mechanism which would be necessary under a coercively egalitarian-anarchist system.[63] However, Rothbard also wrote a piece, published posthu- 3 Anarcho-capitalism and other mously, entitled 'Are Libertarians “Anarchists"?' where he traced the etymological roots of Anarchist philosophy, anarchist schools ultimately coming to the conclusion that "...we find that all of the current anarchists are irrational collectivists, and Main article: Anarchism and anarcho-capitalism therefore at opposite poles from our position. That none of the proclaimed anarchist groups correspond to the lib- Anarchism, in both its collectivist and individualist forms, ertarian position, that even the best of them have unreal- is usually considered a radical left-wing and anti-capitalist istic and socialistic elements in their doctrines”, and fur- ideology that promotes socialist economic theories such thermore, “We must therefore conclude that we are not as communism, syndicalism, and mutualism.[64][65] These anarchists, and that those who call us anarchists are not 8 4 HISTORY on firm etymological ground, and are being completely liberal grounded their reasoning on liberal ideals and clas- unhistorical. On the other hand, it is clear that we are sical economics. Historian and libertarian Ralph Raico not archists either: we do not believe in establishing a argues that what these liberal philosophers “had come tyrannical central authority that will coerce the noninva- up with was a form of individualist anarchism, or, as sive as well as the invasive. Perhaps, then, we could call it would be called today, anarcho-capitalism or market ourselves by a new name: nonarchist. "[72] anarchism.”[75] Unlike the liberalism of Locke, which saw the state as evolving from society, the anti-state liberals saw a fundamental conflict between the voluntary inter- 4 History actions of people – society – and the institutions of force – the State. This society versus state idea was expressed in various ways: natural society vs. artificial society, liberty 4.1 Classical liberalism vs. authority, society of contract vs. society of authority, and industrial society vs. militant society, just to name a Main article: Classical liberalism few.[50] The anti-state liberal tradition in Europe and the United States continued after Molinari in the early writ- Classical liberalism is the primary influence with the ings of Herbert Spencer, as well as in thinkers such as longest history on anarcho-capitalist theory. Classical lib- Paul Émile de Puydt and Auberon Herbert. erals have had two main themes since John Locke first ex- Later, in the early 20th century, the mantle of anti-state pounded the philosophy: the liberty of man, and limita- liberalism was taken by the Old Right. These were minar- tions of state power. The liberty of man was expressed in chists, anti-war, anti-imperialists, and (later) anti-New terms of natural rights, while limiting the state was based Dealers. Some of the most notable members of the Old (for Locke) on a consent theory. Right were Albert Jay Nock, Rose Wilder Lane, Isabel In the 19th century, classical liberals led the attack against Paterson, Frank Chodorov, Garet Garrett, and H. L. statism. One notable was Frédéric Bastiat (The Law), Mencken. In the 1950s, the new “fusion conservatism”, who wrote, “The state is the great fiction by which ev- also called "cold war conservatism”, took hold of the right erybody seeks to live at the expense of everybody else.” wing in the U.S., stressing anti-communism. This in- Henry David Thoreau wrote, “I heartily accept the motto, duced the libertarian Old Right to split off from the right, 'That government is best which governs least'; and I and seek alliances with the (now left-wing) antiwar move- should like to see it acted up to more rapidly and sys- ment, and to start specifically libertarian organizations tematically. Carried out, it finally amounts to this, which such as the (U.S.) Libertarian Party. also I believe, 'That government is best which governs not at all'; and when men are prepared for it, that will be the kind of government which they will have.”[73] 4.2 Nineteenth century individualist anarchism in the United States The early liberals believed that the state should confine its role to protecting individual liberty and property, and Rothbard was influenced by the work of the 19th-century opposed all but the most minimal economic regulations. American individualist anarchists[76] (who were also in- The “normative core” of classical liberalism is the idea fluenced by classical liberalism). In the winter of 1949, that in an environment of laissez-faire, a spontaneous influenced by several 19th century individualists anar- order of cooperation in exchanging goods and services [74] chists, Rothbard decided to reject minimal state laissez- emerges that satisfies human wants. Some individual- faire and embrace individualist anarchism.[77] Rothbard ists came to realize that the liberal state itself takes prop- said in 1965[78] "Lysander Spooner and Benjamin R. erty forcefully through taxation in order to fund its pro- Tucker were unsurpassed as political philosophers and tection services, and therefore it seemed logically incon- nothing is more needed today than a revival and devel- sistent to oppose theft while also supporting a tax-funded opment of the largely forgotten legacy they left to politi- protector. So, they advocated what may be seen as classical philosophy.” However, he thought they had a faulty cal liberalism taken to the extreme by only supporting vol- understanding of economics. The 19th century indi- untarily funded defense by competing private providers. vidualists had a labor theory of value, as influenced by One of the first liberals to discuss the possibility of pri- the classical economists, but Rothbard was a student of vatizing protection of individual liberty and property was Austrian Economics which does not agree with the la- France’s Jakob Mauvillon in the 18th century. Later, in bor theory of value. So, Rothbard sought to meld 19th- the 1840s, Julius Faucher and Gustave de Molinari advo- century American individualists’ advocacy of free mar- cated the same. kets and private defense with the principles of Austrian Molinari, in his essay The Production of Security, argued, economics: “There is, in the body of thought known “No government should have the right to prevent another as 'Austrian economics’, a scientific explanation of the government from going into competition with it, or to re- workings of the free market (and of the consequences of quire consumers of security to come exclusively to it for government intervention in that market) which individu- this commodity.” Molinari and this new type of anti-state alist anarchists could easily incorporate into their political 9

the labor theory of value would be vindicated, and equal amounts of labor would receive equal pay. Again, as a neoclassical economist, Rothbard did not agree with the labor theory. He believed that prices of goods and services are proportional to marginal utility rather than to labor amounts in free market. And he did not think that there was anything exploitative about people receiving an income according to how much buyers of their services value their labor or what that labor produces. Benjamin Tucker opposed vast concentrations of wealth, which he believed were made possible by government intervention and state protected monopolies. He believed the most dangerous state intervention was the require- ment that individuals obtain charters in order to operate banks and what he believed to be the illegality of issuing private money, which he believed caused capital to concentrate in the hands of a privileged few which he called the “banking monopoly.” He believed anyone should be able to engage in banking that wished, without requiring state permission, and issue private money. Though he was supporter of laissez-faire, late in life he said that State intervention had allowed some extreme concentrations of resources to such a degree that even if laissez-faire were instituted, it would be too late for competition to be able to release those resources (he [80] Lysander Spooner (1808–87) gave Standard Oil as an example). Anarcho-capitalists also oppose governmental restrictions on banking. They, like all Austrian economists, believe that monopolization is facilitated and expanded through government inter- [79] and social Weltanschauung”. Rothbard held that the vention. 19th-century American individualist anarchists economic consequences of the political system they ad- such as Tucker and Lysander Spooner have long argued vocate would not result in an economy with people being that monopoly on credit and land interferes with the func- paid in proportion to labor amounts, nor would profit and tioning of a free market economy. interest disappear as they expected. Tucker thought that unregulated banking and money issuance would cause in- Of particular importance to anarcho-capitalists and creases in the money supply so that interest rates would Tucker and Spooner are the ideas of “sovereignty of the drop to zero or near to it. individual”, a market economy, and the opposition to col- lectivism. A defining point upon which they agree is that Rothbard disagreed with this, as he explains in The defense of liberty and property should be provided in Spooner-Tucker Doctrine: An Economist’s View. He says the free market rather than by the State. Tucker said, that first of all Tucker was wrong to think that that would "[D]efense is a service like any other service; that it is la- cause the money supply to increase, because he says bor both useful and desired, and therefore an economic that the money supply in a free market would be self- commodity subject to the law of supply and demand; that regulating. If it were not, then inflation would occur, so in a free market this commodity would be furnished at it is not necessarily desirable to increase the money sup- the cost of production; that, competition prevailing, pa- ply in the first place. Secondly, he says that Tucker is tronage would go to those who furnished the best article wrong to think that interest would disappear regardless, at the lowest price; that the production and sale of this because people in general do not wish to lend their money commodity are now monopolized by the State; and that to others without compensation so there is no reason why the State, like almost all monopolists, charges exorbitant this would change just because banking was unregulated. prices.”[81] Also, Tucker held a labor theory of value. As a result, he thought that in a free market that people would be paid in proportion to how much labor they exerted and that if they were not then exploitation or “usury” was taking place. As he explains in State Socialism and An- archism, his theory was that unregulated banking would 5 Historical precedents similar to cause more money to be available and that this would anarcho-capitalism allow proliferation of new businesses, which would in turn raise demand for labor. This led him to believe that 10 6 ANARCHO-CAPITALIST LITERATURE

ception that the Old West was chaotic with little respect for property rights is incorrect.[83] Since squatters had no claim to western lands under federal law, extra-legal organizations formed to ﬁll the void. Benson explains:[84]

The land clubs and claim associations each adopted their own written contract setting out the laws that provided the means for deﬁning and protecting property rights in the land. They established procedures for registration of land claims, as well as for protection of those claims against outsiders, and for adjudication of inter- nal disputes that arose. The reciprocal arrangements for protection would be maintained only if a member complied with the association’s rules and its court’s rulings. Anyone who re- fused would be ostracized. Boycott by a land club meant that an individual had no protection against aggression other than what he could provide himself.

According to Anderson, “Deﬁning anarcho-capitalist to mean minimal government with property rights devel- 19th century interpretation of the Althing in the Icelandic oped from the bottom up, the western frontier was Commonwealth, which authors such as David Friedman and anarcho-capitalistic. People on the frontier invented in- Roderick Long believe to have some features of anarcho- stitutions that ﬁt the resource constraints they faced.”[85] capitalist society. 6 Anarcho-capitalist literature 5.1 Medieval Iceland

According to the libertarian theorist David D. Friedman, Main article: Anarcho-capitalist literature “Medieval Icelandic institutions have several peculiar and interesting characteristics; they might almost have been invented by a mad economist to test the lengths to which 6.1 Nonfiction market systems could supplant government in its most [82] fundamental functions.” While not directly labeling it The following is a partial list of notable nonfiction works anarcho-capitalist, he argues that the Icelandic Common- discussing anarcho-capitalism. wealth between 930 and 1262 had “some features” of an anarcho-capitalist society – while there was a single le- • Murray Rothbard founder of anarcho-capitalism: gal system, enforcement of law was entirely private and highly capitalist; and so provides some evidence of how • Man, Economy, and State Austrian micro– and such a society would function. “Even where the Icelandic macroeconomics, legal system recognized an essentially “public” offense, • Power and Market Classification of State eco- it dealt with it by giving some individual (in some cases nomic interventions, chosen by lot from those affected) the right to pursue the • case and collect the resulting fine, thus fitting it into an The Ethics of Liberty Moral justification of a essentially private system.”[82] free society • For a New Liberty An outline of how an anarcho-capitalist society could work 5.2 American Old West • David D. Friedman, The Machinery of Freedom Classic consequentialist defense of anarchism According to the research of Terry L. Anderson and P. J. Hill, the Old West in the United States in the period • Michael Huemer, The Problem of Political Author- of 1830 to 1900 was similar to anarcho-capitalism in that ity, a lengthy defense of philosophical and politi- “private agencies provided the necessary basis for an or- cal anarchism (with the latter version being of the derly society in which property was protected and con- anarcho-capitalistic variety) drawing on a mix of flicts were resolved,” and that the common popular per- natural rights and consequentialist arguments 6.2 Fiction 11

• Linda and Morris Tannehill, The Market for Liberty 6.2 Fiction Classic on Private defense agencies Anarcho-capitalism has been examined in certain works • Hans-Hermann Hoppe, Anarcho-Capitalism: An of literature, particularly science fiction. An early ex- Annotated Bibliography ample is Robert A. Heinlein's 1966 novel The Moon Is a Harsh Mistress, in which he explores what he terms “ra- • The Economics and Ethics of Private Property tional anarchism”. • A Theory of Socialism and Capitalism Cyberpunk and postcyberpunk authors have been particularly fascinated by the idea of the breakdown of the • Democracy: The God That Failed nation-state. Several stories of Vernor Vinge, including • Frédéric Bastiat, The Law Radical classical liberal- Marooned in Realtime and Conquest by Default, feature ism. Precursor to anarcho-capitalism. anarcho-capitalist societies, sometimes portrayed in a fa- vorable light, and sometimes not.[86] Neal Stephenson's • Bruce L. Benson: The Enterprise of Law: Justice Snow Crash and The Diamond Age, Max Barry's Jennifer Without The State Government and L. Neil Smith's The Probability Broach all explore anarcho-capitalist ideas. The cyberpunk por- • To Serve and Protect: Privatization and Com- trayal of anarchy varies from the downright grim to the munity in Criminal Justice cheerfully optimistic, and it need not imply anything specific about the writer’s political views. Neal Stephenson, • James Dale Davidson & William Rees-Mogg, The in particular, refrains from sweeping political statements Sovereign Individual Historians look at technology when deliberately provoked.[87][88] and its implications In Matt Stone’s (Richard D. Fuerle) novelette On the Steppes of Central Asia[89] an American grad student is • Auberon Herbert, The Right and Wrong of Compul- invited to work for a newspaper in Mongolia, and dis- sion by the State covers that the Mongolian society is indeed stateless in a semi-anarcho-capitalist way. The novelette was originally • Albert Jay Nock, Our Enemy the State Oppen- written to advertise Fuerle’s 1986 economics treatise The heimer’s thesis applied to early US history Pure Logic of Choice. • Stefan Molyneux, Universally Preferable Behavior: Sharper Security: A Sovereign Security Company Novel, A Rational Proof of Secular Ethics part of a series by Thomas Sewell, is “set a couple of decades into the near-future with a liberty view • Everyday Anarchy of society based on individual choice and free market economics”[90] and features a society where individuals • Practical Anarchy hire a security company to protect and insure them from crime. The security companies are sovereign, but cus- • Herbert Spencer, Social Statics Includes the essay tomers are free to switch between them. They behave as a “The Right to Ignore the State”. Spencer was not combination of insurance/underwriting and para-military an anarcho-capitalist, however many of his ideas, in- police forces. Anarcho-capitalist themes abound, includ- cluding the Law of Equal Freedom, were precursors ing an exploration of not honoring sovereign immunity, to modern anarcho-capitalism. privately owned road systems, a laissez faire market and competing currencies. • George H. Smith,"Justice Entrepreneurship in a Free Market" Examines the Epistemic and en- Sandy Sandfort's, Scott Bieser's and Lee Oaks's Web- trepreneurial role of Justice agencies. comic Escape from Terra, examines a market anarchy based on Ceres and its interaction with the aggressive • Edward P. Stringham, Anarchy and the Law: The statist society on Terra.[91] Political Economy of Choice 700 page book present- ing the major arguments historical studies about anarcho capitalism. 7 See also • Robert Paul Wolff, In Defense of Anarchism, in- • Anarcho-capitalist symbolism fluential defence of anarchism within contemporary analytical philosophy. Wolff is not an anarcho- • Anarcho-capitalism and minarchism capitalist and has expressly repudiated this interpre- • tation of his work. He instead favors social an- Anarchism and capitalism archism and an antiauthoritarian Marxist critique • Criticisms of anarcho-capitalism of capitalism; however, his book is often cited by anarcho-capitalists. • Stateless society 12 8 REFERENCES

8 References [16] Michael Oliver, “Exclusive Interview With Murray Roth- bard”, originally published in The New Banner: A Fort- [1] “Flags of political parties (Sweden)". FOTW Flags Of nightly Libertarian Journal, 25 February 1972. For an ear- The World website. Retrieved 2014-10-30. lier published use of “anarcho-capitalism” by Rothbard, see his “Know Your Rights” WIN: Peace and Freedom [2] Edward Stringham, Anarchy and the law: the political through Nonviolent Action, Volume 7, No. 4, 1 March economy of choice, p. 504 1971, 6–10.

[3] Roderick T. Long, Tibor R. Machan, Anar- [17] Adams, Ian. Political Ideology Today. Manchester Uni- chism/minarchism: is a government part of a free versity Press 2001. p. 33 country?, Ashgate Publishing, Ltd., 2008, Preface, ISBN [18] Proudhon, Pierre-Joseph (1840). What is Property? 978-0-7546-6066-8, ISBN 978-0-7546-6066-8 [19] Murray Rothbard. “Concepts of the role of intellectuals in [4] Anarchy and the Law: The Political Economy of Choice, social change toward laissez faire” (PDF). Archived from by Edward Stringham. Transaction Publishers, 2007 the original (PDF) on 16 December 2008. Retrieved 28 December 2008. [5] Casey, Gerard (2012). Libertarian Anarchy: Against the State. Continuum International Publishing. p. 62. “The [20] Weick, David. Anarchist Justice. pp. 223–224 form of anarchism that accepts this radical notion of freedom, our freedom to bind ourselves, I call libertarian an- [21] Sabatini, Peter. Libertarianism: Bogus Anarchy. archism. The term 'anarcho-capitalism' is used by some [22] Kropotkin, Peter. Anarchism. to name the position I am defending here.” ISBN 978- 1441144676 [23] “Q8. What is the Nolan Chart?". nolanchart.com. Re- trieved March 5, 2014. [6] Morris, Andrew (2008). “Anarcho-capitalism”. In Hamowy, Ronald. The Encyclopedia of Libertarianism. [24] Murray Rothbard. Power and Market: Defense services Thousand Oaks, CA: SAGE; Cato Institute. pp. 13–4. on the Free Market. p. 1051. It is all the more curious, ISBN 978-1-4129-6580-4. LCCN 2008009151. OCLC incidentally, that while laissez-faireists should by the logic 750831024. of their position, be ardent believers in a single, uniﬁed world government, so that no one will live in a state of [7] Edward Stringham, Anarchy and the law: the political “anarchy” in relation to anyone else, they almost never are. economy of choice, p 51 [25] Linda and Morris Tannehill. The Market for Liberty, p. [8] “Review of Kosanke’s Instead of Politics – Don Stacy” 81. Libertarian Papers VOL. 3, ART. NO. 3 (2011) [26] Friedman, David D. The Machinery of Freedom. Chapter [9] “A student and disciple of the Austrian economist Lud- 42 wig von Mises, Rothbard combined the laissez-faire eco- [27] Leeson, Peter. “Anarchy Unbound; Or, Why Self- nomics of his teacher with the absolutist views of hu- Governance Works Better Than You Think.” Cato Insti- man rights and rejection of the state he had absorbed tute, 6 August 2007. Cato-Unbound.org from studying the individualist American anarchists of the 19th century such as Lysander Spooner and Benjamin [28] Hans-Hermann Hoppe “Argumentation Ethics”. Re- Tucker.” Blackwell Encyclopaedia of Political Thought, trieved 6 February 2007. 1987, ISBN 978-0-631-17944-3, p. 290 [29] libertarianism. (2007). In Encyclopædia Britannica. Re- [10] Rothbard, Murray. For A New Liberty. 12 The Public trieved 30 July 2007, from Encyclopædia Britannica On- Sector, III: Police, Law, and the Courts line

[11] Hess, Karl. The Death of Politics. Interview in Playboy [30] Murray Rothbard (2000). “Egalitarianism as A Revolt Magazine, March 1969 Against Nature And Other Essays: and other essays"". Ludwig von Mises Institute, 2000. p. 207 [12] Holcombe, Randall G., Common Property in Anarcho- Capitalism, Journal of Libertarian Studies, Volume 19, [31] “Murray N. Rothbard (1926–1995), American No. 2 (Spring 2005):3–29. economist, historian, and individualist anarchist.” Avrich, Paul. Anarchist Voices: An Oral History of [13] Avrich, Paul. Anarchist Voices: An Oral History of Anar- Anarchism in America, Abridged Paperback Edition chism in America, Abridged Paperback Edition (1996), p. (1996), p. 282 “Although there are many honorable 282 exceptions who still embrace the “socialist” label, most people who call themselves individualist anarchists today [14] Rothbard, Murray N., A Future of Peace and Capitalism; are followers of Murray Rothbard’s Austrian economics, Murray N. Rothbard, Left and Right: The Prospects for and have abandoned the labor theory of value.” Carson, Liberty. Kevin. Mutualist Political Economy, Preface. Archived 21 December 2010 at WebCite [15] Roberta Modugno Crocetta, Murray Rothbard’s anarcho- capitalism in the contemporary debate. A critical defense, [32] Hoppe, Hans-Hermann (2001) “Anarcho-Capitalism: An Ludwig Von Mises Institute. Annotated Bibliography” Retrieved 23 May 2005 13

[33] Friedman, David D. (1982) “Chapter 41: Problems” The [52] Stringham, Edward (Winter 1998–1999). “Market Cho- Machinery of Freedom. Retrieved 27 April 2015 sen Law”. Journal of Libertarian Studies 14 (1): 53–77. Retrieved 8 January 2015. [34] Rothbard, Murray N. (1982) “Law, Property Rights, and Air Pollution” Cato Journal 2, No. 1 (Spring 1982): pp. [53] Stringham, Edward; Zywicki, Todd (November 5, 2005). 55–99. Retrieved 20 May 2005 “Rivalry and Superior Dispatch: An Analysis of Com- peting Courts in Medieval and Early Modern England”. [35] Rothbard, Murray N. (1982) The Ethics of Liberty Hu- George Mason Law & Economics Research Paper 10 (57). manities Press ISBN 978-0-8147-7506-6 p. 162 Re- doi:10.2139/ssrn.1703598. Retrieved 8 January 2015. trieved 20 May 2005 [54] Friedman, David D. (1973) The Machinery of Freedom: [36] Rothbard, Murray N. (1973) For a new Liberty Collier Guide to a Radical Capitalism Harper & Row ISBN 978-0- Books, A Division of Macmillan Publishing Co., Inc., 06-091010-5 ch29 Archived 10 January 2011 at WebCite New York: pp. 24–25. Retrieved 20 May 2005 [55] Rothbard, Murray N. (1973) For a new Liberty Collier [37] Rothbard, Murray N. (1975) Society Without A State (pdf) Books, A Division of Macmillan Publishing Co., Inc., Libertarian Forum newsletter (January 1975) New York: p. 223. Retrieved 5 August 2006.

[38] Exclusive Interview With Murray Rothbard The New Ban- [56] “Restitution_Transfer_and_Recoupment”. ner: A Fortnightly Libertarian Journal (25 February 1972) [57] Stringham, Edward (2015). Private Governance. Oxford University Press. [39] Hoppe, Hans-Hermann (2002) “Rothbardian Ethics” Re- trieved 23 May 2005 [58] Caplan, Bryan; Stringham, Edward (2008). “Privatizing the Adjudication of Disputes”. Theoretical Inquiries in [40] Rothbard, Murray N. (1962) Ludwig von Mises Institute Law 9 (2): 503–528. Man, Economy & State with Power and Market Ludwig von Mises Institute ISBN 978-0-945466-30-7 ch. 2 Re- [59] O'Keeﬀe, Matthew (1989) “Retribution versus Restitu- trieved 19 May 2005 tion” Legal Notes No. 5, Libertarian Alliance ISBN 978- 1-870614-22-1 Retrieved 19 May 2005 [41] Hess, Karl (1969) Letter From Washington The Liberta- tian Forum Vol. I, No. VI (15 June 1969) Retrieved 5 [60] Benson, Bruce (1998). To Serve and Protect: Privatization August 2006 and Community in Criminal Justice. NYU Press. pp. 235– 238. ISBN 978-0-8147-1327-3. [42] Long, Roderick T. 199. “A Plea for Public Property.” Formulations 5, no. 3 (Spring) [61] Tannehill, Linda and Morris (1993). The Market for Lib- erty (PDF). San Francisco: Fox & Wilkes. pp. 105–106. [43] Rothbard, Murray N. LewRockwell.com. Retrieved 10 ISBN 978-0-930073-08-4. Retrieved 30 June 2011. September 2006. [62] Rothbard, Murray N. (1973) Interview Reason February [44] Rothbard, Murray N. (1962) Man, Economy & State with 1973. Retrieved 10 August 2005. Power and Market, Mises.org [63] Tame, Chris R. October 1983. The Chicago School: [45] Nozick, Robert (1973) Anarchy, State, and Utopia Lessons from the Thirties for the Eighties. Economic Af- fairs. p. 56 [46] Friedman, David. The Machinery of Freedom: Guide to a Radical Capitalism. Harper & Row. pp. 144–45 [64] Brooks, Frank H. (1994). The Individualist Anarchists: An Anthology of Liberty (1881–1908). Transaction Pub- [47] Brown, Susan Love, The Free Market as Salvation from lishers. p. xi. ISBN 1-56000-132-1. Usually considered Government: The Anarcho-Capitalist View, Meanings of to be an extreme left-wing ideology, anarchism has always the Market: The Free Market in Western Culture, edited included a signiﬁcant strain of radical individualism, from by James G. Carrier, Berg/Oxford, 1997, p. 113. the hyperrationalism of Godwin, to the egoism of Stirner, to the libertarians and anarcho-capitalists of today [48] Friedman, David. The Machinery of Freedom. Second edition. La Salle, Ill, Open Court, pp. 116–17. [65] Joseph Kahn (2000). “Anarchism, the Creed That Won't Stay Dead; The Spread of World Capitalism Resurrects a [49] Friedman, David. The Machinery of Freedom: Guide to Long-Dormant Movement”. The New York Times (5 Au- a Radical Capitalism. Harper & Row. pp. 127–28 gust).Colin Moynihan (2007). “Book Fair Unites Anar- chists. In Spirit, Anyway”. New York Times (16 April). [50] Molinari, Gustave de (1849) The Production of Security (trans. J. Huston McCulloch)'.' Retrieved 15 July 2006. [66] Marshall, Peter (2008). Demanding the Impossible: A Archived 30 July 2007 at WebCite History of Anarchism. London: Harper Perennial. p. 565. “In fact, few anarchists would accept the 'anarcho- [51] Stringham, Edward; Curott, Nicholas (2010). “The Rise capitalists’ into the anarchist camp since they do not share of Government Law Enforcement in England”. THE a concern for economic equality and social justice, Their PURSUIT OF JUSTICE: LAW AND ECONOMICS OF LE- self-interested, calculating market men would be inca- GAL INSTITUTIONS, Edward Lopez, ed., Independent In- pable of practising voluntary co-operation and mutual aid. stitute 2010. Anarcho-capitalists, even if they do reject the State, might 14 9 FURTHER READING

therefore best be called right-wing libertarians rather than [79] "The Spooner-Tucker Doctrine: An Economist’s View, anarchists.” Journal of Libertarian Studies, vol. 20, no. 1, p. 7 (1965, 2000) [67] Newman, Saul (2010). The Politics of Postanarchism. Ed- inburgh University Press. p. 43. “It is important to dis- [80] Tucker, Benjamin. State Socialism and Anarchism tinguish between anarchism and certain strands of right- [81] Tucker, Benjamin. “Instead of a Book” (1893) wing libertarianism which at times go by the same name (for example, Rothbard’s anarcho-capitalism).” ISBN [82] Friedman, David D. (1979) Private Creation and Enforce- 0748634959 ment of Law: A Historical Case. Retrieved 12 August 2005. [68] McKay, Iain (2008). “Section F – Is 'anarcho'-capitalism a type of anarchism?" An Anarchist FAQ: Volume 1. Oak- [83] Anderson, Terry L. and Hill, P. J. An American Exper- land/Edinburgh: AK Press. ISBN 9781902593906 iment in Anarcho-Capitalism: The Not So Wild, Wild West, The Journal of Libertarian Studies [69] Goodway, David (2006). Anarchist Seeds Beneath the Snow: Left Libertarian Thought and British Writers from [84] Benson, Bruce L. (1998). “Private Justice in America”. William Morris to Colin Ward. Liverpool: Liverpool Uni- To Serve and Protect: Privatization and Community in versity Press. p. 4. "'Libertarian' and 'libertarianism' Criminal Justice. New York: New York University Press. are frequently employed by anarchists as synonyms for p. 101. ISBN 978-0-8147-1327-3. 'anarchist' and 'anarchism', largely as an attempt to dis- tance themselves from the negative connotations of 'an- [85] Probasco, Christian (18 June 2008). “Grilling Terry L. archy' and its derivatives. The situation has been vastly Anderson, Free-Market Environmentalist”. New West. complicated in recent decades with the rise of anarcho- [86] Henry, Jim. “Reviews by Jim Henry: Vernor Vinge”. Re- capitalism, 'minimal statism' and an extreme right-wing trieved Mar 17, 2011. laissez-faire philosophy advocated by such theorists as Rothbard and Nozick and their adoption of the words 'lib- [87] Godwin, Mike; Neal Stephenson (February 2005). “Neal ertarian' and 'libertarianism'. It has therefore now become Stephenson’s Past, Present, and Future; The author of the necessary to distinguish between their right libertarianism widely praised Baroque Cycle on science, markets, and and the left libertarianism of the anarchist tradition.” post-9/11 America” (PRINT ARTICLE). Reason (magazine). Archived from the original on 10 August 2007. [70] Rothbard, Murray N (1973). "A Future of Peace and Cap- Retrieved 11 August 2007. italism". James H. Weaver, ed., Modern Political Econ- omy. Boston: Allyn and Bacon. pp. 419–30. [88] Roblimo; Neal Stephenson (20 October 2004). “Neal Stephenson Responds With Wit and Humor” (EMAIL [71] Rothbard, Murray N (25 February 1972). Exclusive Inter- EXCHANGE). Slashdot. Retrieved 11 August 2007. view With Murray Rothbard. The New Banner: A Fort- nightly Libertarian Journal. [89] “On the Steppes of Central Asia”. Retrieved 10 February 2008. [72] “Mises Daily”. Mises Institute. [90] “Sharper Security Series”. Catallaxy Media. Retrieved 23 [73] Thoreau, Henry David (1849) Civil Disobedience November 2012.

[74] Razeen, Sally. Classical Liberalism and International Eco- [91] “Big Head Press – Thoughtful Stories, Graphic Novels nomic Order: Studies in Theory and Intellectual History, Online And In Print – Escape From Terra – by Sandy Routledge (UK) ISBN 978-0-415-16493-1, 1998, p. 17 Sandfort, Scott Bieser, Leila Del Duca and Lee Oaks!". Escape From Terra. Archived from the original on 15 [75] Raico, Ralph (2004) Authentic German Liberalism of the May 2011. Retrieved 22 April 2011. 19th century Ecole Polytechnique, Centre de Recherce en Epistemologie Appliquee, Unité associée au CNRS 9 Further reading [76] "...only a few individuals like Murray Rothbard, in Power and Market, and some article writers were inﬂuenced by these men. Most had not evolved consciously from this Sources that consider anarcho-capitalism a form of tradition; they had been a rather automatic product of the individualist anarchism American environment.” DeLeon, David. The Ameri- can as Anarchist: Reﬂections on Indigenous Radicalism. • Johns Hopkins University Press, 1978, p. 127 Alan and Trombley, Stephen (Eds.) Bullock, The Norton Dictionary of Modern Thought, W. W. Nor- [77] Gordon, David. The Essential Rothbard. Ludwig von ton & Company (1999), p. 30 Mises Institute, 2007. pp. 12–13. • Outhwaite, William. The Blackwell Dictionary of [78] “The Spooner-Tucker Doctrine: An Economist’s View.” Modern Social Thought, entrada: Anarchism, pp. A Way Out. May–June 1965. Later republished in Egali- 13–14, 21. 2002 tarianism As A Revolt Against Nature by Rothbard, 1974. Later published in Journal of Libertarian Studies, 2000. • Bottomore, Tom. Entrada: Dictionary of Marxist The Spooner-Tucker Doctrine: An Economist’s View Thought, Anarchism, p. 21 1991. 15

• Blackwell Encyclopaedia of Political Thought, • Blackwell Encyclopaedia of Political Thought, 1991, 1991, ISBN 978-0-631-17944-3, p. 11 ISBN 978-0-631-17944-3, p. 11

• Barry, Norman. Modern Political Theory, 2000, • Levy, Carl. “Anarchism”, Microsoft Encarta Online Palgrave, p. 79 Encyclopedia 2006

• Adams, Ian. Political Ideology Today, Manchester • Brown, Susan Love, The Free Market as Salvation University Press (2002) ISBN 978-0-7190-6020-5, from Government: The Anarcho-Capitalist View, p. 135 Meanings of the Market: The * Free Market in Western Culture, editado por James G. Carrier, • Grant, Moyra. Key Ideas in Politics, Nelson Thomas Berg/Oxford, 1997, p. 99 2003 ISBN 978-0-7487-7096-0, p. 91 • Anarchism/Minarchism: Is a Government Part of a • Heider, Ulrike. Anarchism: Left, Right, and Green, Free Country? Ed., Roderick T. Long y Tibor R. City Lights, 1994. p. 3. Machan. Ashgate • Ostergaard, Geoﬀrey. Resisting the Nation State – • Anarchy and the Law: The Political Economy of the anarchist and paciﬁst tradition, Anarchism As A Choice, Edward Stringham. Transaction Publishers, Tradition of Political Thought. Peace Pledge Union 2007. Publications

• Avrich, Paul. Anarchist Voices: An Oral History of As a form of anarchism in general Anarchism in America, Abridged Paperback Edition (1996), p. 282 • Sylvan, Richard. Anarchism. A Companion to Con- • Brooks, Frank H. (ed) (1994) The Individualist An- temporary Political Philosophy, editores Goodin, archists: An Anthology of Liberty (1881–1908), Robert E. and Pettit, Philip. Blackwell Publishing, Transaction Publishers, Prefacio p. xi 1995, p. 231

• Sheehan, Sean. Anarchism, Reaktion Books, 2004, • Perlin, Terry M. Contemporary Anarchism. Trans- p. 39 action Books, New Brunswick, NJ 1979, p. 7

• Avrich, Paul. Anarchist Voices: An Oral History of • DeLeon, David. The American as Anarchist: Reflec- Anarchism in America, Abridged Paperback Edition tions of Indigenous Radicalism, Chapter: The Begin- (1996), p. 282 ning of Another Cycle, Johns Hopkins University Press, 1979, pp. 117 & 123 • Tormey, Simon. Anti-Capitalism, One World, 2004, pp. 118–19 • Kearney, Richard. Continental Philosophy in the 20th Century, Routledge (UK) (2003), p. 336 • Raico, Ralph. Authentic German Liberalism of the 19th Century, Ecole Polytechnique, Centre de • Sargent, Lyman Tower. Extremism in America: A Recherce en Epistemologie Appliquee, Unité asso- Reader, NYU Press (1995), p. 11 ciée au CNRS, 2004 • Sanders, John T.; Narveson, Jan, For and Against • Offer, John. Herbert Spencer: Critical Assessments, the State, Rowman and Littlefield Publishers, 1996, Routledge (UK) (2000), p. 243 ISBN 978-0-8476-8165-5

• Busky, Donald. Democratic Socialism: A Global • Goodwin, Barbara. Using Political Ideas, fourth edi- Survey, Praeger/Greenwood (2000), p. 4 tion, John Wiley & Sons (1987), p. 141 • Foldvary, Fred E. What Aren't You an Anarchist?, Progress Report, reprinted en The Free Liberal, 14 Sources that do not consider anarcho-capitalism to be February 2006 a form of anarchism

• Heywood, Andrew. Politics: Second Edition, Pal- • grave (2002), p. 61 Meltzer, Albert. Anarchism: Arguments For and Against AK Press, (2000) p. 50 • Levy, Carl. Anarchism, Microsoft Encarta Online Encyclopedia 2006. 10 External links Sources holding that individualist anarchism was re- born as anarcho-capitalism • Anarcho-capitalism at DMOZ 16 10 EXTERNAL LINKS

• Ludwig von Mises Institute – a research and ed- ucational center of classical liberalism; including anarcho-capitalism, libertarian political theory, and the Austrian School of economics. • Freedomain Radio. Hosted by Stefan Molyneux, discusses anarcho-capitalism topics • Anarcho-capitalist FAQ.

• Anti-state.com, the “online center for market anarchism,” has an active forums and archive of theoretical and practical articles from notable anarcho- capitalists

• The Libertarian Standard – a website of Austrian and Rothbardian-inﬂuenced libertarians • LewRockwell.com, run by Lew Rockwell

• Property and Freedom Society – an International anarcho-capitalist society

• Strike The Root – an anarcho-capitalist website fea- turing essays, news, and a forum.

• Center for a Stateless Society – anarchist think-tank and media center focused on market anarchism 17

11 Text and image sources, contributors, and licenses

11.1 Text

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