Understanding the debates around anarcho-capitalism
- Anarcho-capitalism is a political philosophy advocating for the abolition of the state and the privatization of law and order through a free-market system.
- The term is coined by libertarian economist Murray Rothbard.
- However, it gained recent attention with Javier Milei, self-identified as an anarcho-capitalist, winning the Argentine presidential race.
Functioning of Anarcho-Capitalism
- Traditionally, free-market proponents endorsed private provision for most goods and services, except for policing and courts, assumed to be the state's domain.
- Anarcho-capitalists challenge this notion, asserting that private companies in a free market can deliver superior policing and legal services.
- Similar to how they offer better products and services than the government.
Key Features of Anarcho-Capitalism
- In an anarcho-capitalist society, individuals will pay private police and courts for protection and dispute resolution.
- Private companies, which depend on customer patronage for their survival, would effectively serve the needs of their customers.
- The competition would ensure that the quality of police and legal services is high and prices low.
- This contrasts with the state's police and court system, funded by taxpayers, often criticised for inefficiencies and low quality.
Critics' Concerns
- Critics contend that providing police and judiciary services through multiple firms within one region could lead to conflict and chaos.
- They also argue that a market-driven system would favour the rich, allowing them to escape justice by paying more.
Anarcho-capitalists Response
- Anarcho-capitalists counter these claims, asserting that competing private entities would cooperate based on pre-approved rules to avoid conflicts.
- They also argue that private firms, reliant on broader societal patronage, would not favour the rich to avoid losing business from the majority of the population.
Potential for Justice and Market Dynamics
- Anarcho-capitalists maintain that, contrary to critics' views, anarcho-capitalism could provide better justice opportunities for the poor.
- Private firms, aiming to meet market demand, might focus on the bottom of the economic pyramid.
- This stands in contrast to the current system, where state-backed police and legal structures are influenced by lobbying and favours.