Anarcho-Capitalism
Anarcho-capitalism is the most radical variant of libertarianism: abolish the state entirely and replace all government functions — law, courts, police, defense — with competing private firms operating through voluntary market contracts. Private property rights are absolute; all social interaction must be consensual.
Anarcho-capitalism takes the libertarian non-aggression principle to its logical conclusion: since taxation is coercive, the state itself is illegitimate. All services the state provides can and should be provided by competing private firms. Critics argue this leads not to freedom but to plutocracy — rule by those who can pay for the best private security.
Core Arguments
- The State is Criminal: The state claims a monopoly on violence and extracts taxes involuntarily. This is indistinguishable from extortion by a sufficiently powerful gang.
- Privatize Everything: Courts, police, roads, schools, welfare — all can be provided competitively by private firms to those who pay.
- Absolute Property Rights: Homesteading (mixing labor with unowned land) creates legitimate property. All subsequent transfers must be voluntary.
- Polycentric Law: Competing legal systems and private arbitration replace state courts. People choose which legal framework governs their contracts.
Key Thinkers
The founding theorist of anarcho-capitalism. Man, Economy, and State (economics) and The Ethics of Liberty (philosophy). Argued the state is a "gang of thieves writ large."
Developed "argumentation ethics" as a foundation for anarcho-capitalism. Controversial for combining it with reactionary cultural positions. Democracy: The God That Failed.
Strengths & Weaknesses
Strengths (as argued by proponents)
- Consistent application of the non-aggression principle
- Eliminates war, taxation, and political coercion entirely in theory
- Competition among service providers drives down cost and improves quality
- No democratic majorities can override individual rights
Weaknesses
- Wealthier people can afford better private security, courts, and law — creating power asymmetry
- No mechanism for collective action problems or externalities
- Private defense agencies might form cartels or wage war
- No historical large-scale examples exist
- Many anarchists reject the "anarcho" label: anarchism historically means no hierarchy, not private hierarchy