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We Live In The Anarcho-Capitalist Utopia

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In my previous essay, “Markets Are Ungrounded,” I undertook to list some of the regulations that are necessary for a market to function. The idea of a “meta-market” is particularly tempting to those opposed to “government” regulation – the idea that we might not only choose our transactions, but choose the rules for our transactions. I think this is an impossible, incoherent fantasy.

In The Machinery of Freedom, David Friedman defines government as “an agency of legitimized coercion.” Friedman believes that government should not exist, and that the functions currently performed by government either should not exist or should be undertaken by private individuals and groups.

He says:

The special characteristic that distinguishes governments from other agencies of coercion (such as ordinary criminal gangs) is that most people accept government coercion as normal and proper. The same act that is regarded as coercive when done by a private individual seems legitimate if done by an agent of the government. (In “What is Anarchy? What is government?”)

Further, Friedman defines “coercion” as “the violation of what people in a
particular society believe to be the rights of individuals with respect to other individuals.”

So how would these private groups work to perform functions now performed by government – for instance, preventing and punishing crimes? Friedman imagines that this would all be done voluntarily – that is, by individuals subscribing to protection agencies that use force to protect citizens from violations of their rights (as defined by the private, competing protection agencies). These protection agencies would then patronize private courts who would compete for jurisdiction.

Here is my problem with the Friedman model: it’s exactly the system that exists today, and has always existed since the beginning of human kind.

At the deepest level, Friedman is not proposing any change to the current system(s) of government at work in the world today.

Friedman proposes not regulations for a market, but a system of markets and meta-markets, a system that resolves everything through voluntary transactions. However, this is an illusion. Ultimately, it can’t be “markets all the way down” (or up) – competing protection agencies use force, and the balance of force is what supposedly protects citizens. The “free market” is at the deepest level founded upon force.

This is exactly the situation that we have today.

For instance, our Federal and state governments today compete with various forms of organized crime, which fill the institutional vacuums created by the “legitimate” governments denying contract enforcement to some transactions. These are perfect examples of competing protection agencies under the David Friedman model.

Let me repeat Friedman’s definition of coercion: “the violation of what people in a
particular society believe to be the rights of individuals with respect to other individuals.”

Friedman wants to eliminate this “coercion” thing, at least by governments.

But the protection agencies themselves define what coercion is, for their subscribers. And they enforce their definitions by force.

How is that any different from . . . all of human history? Are not all anarcho-capitalist protection agencies “agencies of legitimized coercion”?

There is no way to protect oneself from coercion (whatever one’s definition of this is) without engaging in the coercion of others.

(In case it’s not clear, I’m happy to be straightened out here – I’d much rather understand the dimensions of the problem than be “right.”)

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Written by Sister Y

January 24, 2011 at 5:16 pm