“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

A common refrain among people unfamiliar with libertarian theory is that corporations are the problem and government is the solution—that government needs to tightly regulate private business to rein in corporate greed. This view is fundamentally confused. It entails that private business—which derives its means by voluntary exchange—is the problem, while government—which derives its means through violence—is the solution.

First, greed is a universal feature of human nature that’s here to stay. Businessmen have always been and will always be greedy. And the rest of us are greedy too, in the sense of being self-interested. That includes the agents of the government. Since government can use violence to achieve its ends, we should be much more worried about predation by greedy politicians and bureaucrats.

Of course, businessmen are not angels. Like all people, they can be jerks and criminals. Adam Smith’s great insight was that businessmen benefit others not out of benevolence, but by their own greedy pursuits in a free market. Under the institution of free market competition, private predation can be minimized and the social benefits of greed can be maximized. But this cannot be achieved with a government in existence.

Greedy businessmen don’t passively submit to regulations, they lobby and do whatever they can to gain control of the regulatory body. Once they have access to the political means, they use it as a tool to hinder their competition, to the detriment of everybody else. Gabriel Kolko has shown that even the Progressive Era regulations were pushed through by big business to restrict competition. Where there is government, businesses will fight to control it for their benefit. Under government, the corporation becomes an exploiter.

In fact, free market competition is the best kind of “regulation”. Where there is competition, people have choice and can avoid businesses they don’t like. And businesses have incentives to publicize the misbehavior of their competitors. Competition is simply the best check on private predation. Furthermore, it can be supplemented by other voluntary measures, like boycotts, to seal any cracks. There is no reason to introduce legalized violence in the form of a government.

Government is not the solution, it is the root problem. Government brings with it the problem of public predation, and creates the avenues for systematic private predation. Advocating more government as the solution to private predation is like trying to put out a fire by dousing it with gasoline. Without government, private predation can be restrained through market competition. In other words, government is the ultimate cause and corporations are the proximate cause of the problems. Don’t be a branch-striker. Strike the root.

[Further reading: Roderick Long, Can We Escape the Ruling Class]

 

Social decayDespite incredible advances in knowledge and technology over the past few decades, living standards have actually declined (also see here and here). [edit Aug 2010: In retrospect this statement was too strong, living standards are certainly higher today. It would be more accurate to say that the rate of increase has fallen.] Taken alone, this makes no sense—comparable advances in the past, such as the industrial revolution, have sparked enormous increases in prosperity. On top of falling living standards, civilization is crumbling: war, poverty, crime, debt, disease, social dysfunction, family breakdown, hedonism, etc. Why are so many things going wrong, despite unparalleled advances in knowledge and technology? This is the great unanswered question of our time. Keep reading...

 

The first obvious strategy for anarchists is education: we need to teach people that government is immoral, unnecessary, and doesn’t work. But how do we achieve this? Do we convert the masses or the intellectuals? Do we emphasize morality or practicality?

Hans Hoppe has provided the answer to such questions with his strategy of “Anti-intellectual Intellectualism”. Following Boétie’s insight that governments derive their power and legitimacy from public opinion, we must recognize that it is the intellectuals who shape this public opinion. Accordingly, Hoppe calls for “anti-intellectual intellectuals” to take up the task of combating the state intellectuals, and ultimately delegitimizing, and hence destroying, the State. The two main branches of this strategy are (1) rooting one’s arguments in morality, and not mere utilitarianism, while (2) circumventing academia and reaching out to the general public. Thus, Hoppe writes, “states, as powerful and invincible as they might seem, ultimately owe their existence to ideas and, since ideas can in principle change instantaneously, states can be brought down and crumble practically overnight.” Keep reading...

 

This article is a sequel to my previous post “Root Causes and the Libertarian Immigration Debate”. Continuing the discussion on what strategy libertarians should follow with regards to immigration, I will argue that even if we accept the Hoppean argument for closed borders, the conclusion still violates libertarian principles.

Toward a Theory of Strategy for Liberty

In chapter thirty of his book “The Ethics of Liberty”, Rothbard laid down the groundwork of anarchist strategy. Basically, there are two principles libertarians must keep in mind when pursuing strategy. First, we must not violate the nonaggression principle. Second, we must be abolitionists, for advocating anything less than the immediate abolition of aggressive violence would mean the sanctioning of injustice. Keep reading...

 

Whenever I am arguing with someone over the merits and morality of anarchism versus the horrible tragedy of statism, I am almost always confronted with the inevitable question: “What about the poor?” These ignorant statists (I’ve yet to find one aware of economics) are operating under the assumption that the government helps the poor, and so a stateless society would therefore leave the poor worse off. This assumption is false.

First off, let’s be generous and assume that the government actually has the intention to help the poor. That is, the government is genuinely working to reduce poverty and not just padding the bank accounts of state-allied business (note that most politicians are also businessmen). However, we all know a certain road that is paved with good intentions. They key is to look at the effects of government programs, not just the intentions. Do they really help the poor? Keep reading...

 

There are a thousand hacking at the branches of evil to one who is striking at the root.
- Henry David Thoreau

The libertarian immigration debate is alive and well.1 Although there is no debate over the immigration policy of a free society, there is considerable controversy over the proper immigration policy in our currently existing statist society. However, this debate has neglected to address the root causes of forced integration and forced exclusion, and its solutions fail accordingly. This article will attempt to resolve the debate by addressing the root causes of forced integration and forced exclusion, and by proposing solutions that address these root causes.

Before we can address the problem of immigration under statism, we must establish several premises. Keep reading...

 

Naomi Klein’s joke of a book, The Shock Doctrine, represents the typical drivel that is modern state-socialism. It is chock full of logical fallacies, with straw man arguments on almost every page. You will almost never find a term that is defined, leading to compounding errors. And when she does actually stop using ad hominem attacks and address the issues, we find her advocacy of socialism is nothing more than unsupported assertions. She does not bother to prove that a minimum wage is good or that price controls work; she just assumes they are better than the free market.

Her entire book can be easily annihilated by exposing the errors in her thesis on page twenty-two: to challenge the idea “that the triumph of deregulated capitalism has been born of freedom, that unfettered markets go hand in hand with democracy. Instead, I will show that this fundamentalist form of capitalism has consistently been midwifed by the most brutal forms of coercion inflicted on the collective body politic as well as on countless individual bodies. The history of the contemporary free market – better understood as the rise of corporatism – was written in shocks.”

Now, any person even somewhat familiar with libertarianism will think this is written as a joke. However, pathetic as it is, Klein is being serious. She really believes this. Keep reading...