ANARCHO
CAPITALISM - ECONOMY
News:
Understanding the debates
around anarcho-capitalism
What's
in the news?
●
The term “Anarcho-Capitalism” has surged
in prominence as Javier Milei, a self-professed anarcho-capitalist, secured
victory in recent Argentina’s presidential elections.
Anarcho-Capitalism:
●
Anarcho-Capitalism is a political
philosophy advocating for the elimination
of the State and the delegation of law and order to private entities within a
free-market system.
●
Coined by American libertarian economist
Murray Rothbard, the ideology attributes its roots to Belgian political
economist Gustave de Molinari, considered to be the first anarcho-capitalist.
●
David Friedman, Edward Stringham, and
Michael Huemer stand among the contemporary proponents of anarcho-capitalism.
Arguments
made by Anarcho-Capitalists:
1.
Private Companies Excelling in Policing and Legal Services:
●
In a free market, private companies can
effectively provide policing and legal services, often outperforming the state
in both quality and affordability.
Reasons:
●
As private companies would depend on
customer patronage for their survival, they would effectively serve the needs
of their customers. This is in contrast to the current model of State run
policing and legal services where citizens need to pay taxes regardless of the
quality of these services.
●
Competition between different private
police and courts would ensure that the quality of police and legal services is
high and prices low
Criticisms
of Anarcho-Capitalism:
1.
Armed Private Groups and the Threat of Chaos:
●
Anarcho-capitalism critics argue that
providing services like police and judiciary through multiple firms in a single
region would lead to conflict among armed private groups, causing chaos.
2.
Wealth Disparities in Private Justice:
●
Critics also contend that market-driven
police protection and legal adjudication would disproportionately benefit the
wealthy, allowing them to escape justice by paying more to private entities and
leaving the poor without recourse.