Why Anarcho-Capitalism is the Key to True Freedom

“The Five Plagues of the Country: I govern the people — I pray for the people — I legislate for the people — I fought for the people — I preserve the peace for all four — And I’ll have all five” 1834

There are three parts to this assertation;

• What is anarcho-capitalism?

• What is true freedom?

• Why is the first key to the second?

What is Anarcho-Capitalism?

Anarcho-capitalism is a political philosophy that blends the precepts of anarchism and capitalism.

In doing so, this philosophy advocates for the elimination of the state, and the establishment of a free-market economy. All human interactions should be voluntary, and based on the principles of individualism and private property rights.

Anarcho-capitalists believe that government intervention in the economy leads to inefficiencies, and that the free market is the most efficient mechanism for allocating resources. We also believe that private businesses (rather than government agencies) should provide essential services such as healthcare, education, and security.

In an anarcho-capitalist society, individuals and businesses would be free to trade with one another without any government interference, and disputes would be resolved through private arbitration and mediation.

What is True Freedom?

True freedom is a state of being, where an individual is able to exercise their own agency and make choices. These decisions are not constrained by external factors, such as social norms, laws, or oppressive systems. True freedom is the ability to act, think, and speak without fear of repercussions or coercion.

True freedom requires the individual to exercise responsibility and respect for the freedom of others. It is not a license to harm or exploit others, but rather a recognition of the inherent dignity and autonomy of all individuals.

True freedom is the ability to pursue one's own goals and desires, while simultaneously respecting the rights and freedoms of others.

Why is the First Key to the Second?

Anarcho-capitalism emphasises the primacy of individual rights, including the right to live free from coercion and aggression, as the highest moral principle. The Non Aggression Principle (NAP) holds that individuals are free to do as they please as long as they do not harm others or infringe on their rights. Respect for and maintenance of private property is also key to a free society, as private property is seen as a natural extension of individual rights. Anarcho-capitalists argue that the government is inherently subject to its own inefficiency and corruption. Government provision of goods and services, as well as monopolies (resulting from state regulation) are detrimental to consumers. Within this philosophy, business profit is seen as a moral and necessary incentive for individuals to create wealth, innovate, and serve the needs of others. Anarcho-capitalists advocate for the abolition of the state and the establishment of a truly free market.

The Primacy of Individual Rights

Anarcho-capitalism asserts the primacy of the rights of the individual as the highest moral principle. Each individual has the right to live free from coercion and aggression. This is stated elegantly and succinctly by the Non Aggression Principle (NAP). In essence, the NAP holds that individuals are free to do as they please, so long as they do not harm others or infringe on their rights. The NAP upholds the concept of true freedom.

Consider a scenario where two people are having a conversation and one of them makes a statement that the other person finds offensive. Under the NAP, the offended person would have the right to express their displeasure and voice their objections to the statement, but they would not have the right to use force or coercion to silence the speaker or prevent them from expressing their opinions.

In contrast, authoritarian governments such as the former Soviet Union, or even modern day China, frequently engage in the violent suppression of dissent, including imprisoning or executing those who speak out against the government or its policies. This violates the NAP because it involves the initiation of force against individuals who are not themselves engaging in any kind of aggressive behaviour. Unfortunately, there are increasing examples of this kind of anti-freedom thinking entering the discussion in the West, as well.

All mankind...being all equal and independent, no one ought to harm another
in his life, health, liberty, or possessions.
–John Locke

The Importance of Private Property

Relative to individual rights, our political philosophy advances the importance of private property rights. Anarcho-capitalists assert that the freedom to own and control property is a natural extension of individual rights. Therefore, we advocate for the establishment of a society based upon the freedom to exercise private property rights. Respect for, and maintenance of private property is the foundation of a free society.

Key to a free society that respects property rights, is a truly free market. This is because the free market provides the space for voluntary exchange of goods and services, and healthy competition. Through voluntary exchange and competition, the free market has proven it provides goods and services infinitely more efficiently and more successfully than any government.

In a truly free market, property rights of the individual would be respected and protected by voluntary contracts and agreements. In the case of disagreements and disputes, individuals would utilise professional arbitration and mediation services to reach resolutions.

The free market is the only system compatible with human dignity, prosperity, and liberty.
–Ludvig von Mises

The Inefficiency of Government

We anarcho-capitalists argue that government is inherently subject to its own inefficiency and corruption. Government regulation and licensing prevents healthy competition and stifles innovation. These synthetic market conditions also lead to monopolies forming. These corporate behemoths, borne from the hubris and greed of the government, are detrimental to the interests of the people.

The provision of goods and services by government and monopolies show similar characteristics. Supply is artificially limited by their chokehold on the market. The deficiency of healthy competition results in a lack of downward pressure on prices. These factors adversely affect consumers.

The state’s inherent immorality and corruptibility is also evident in its licentious appropriation and spending of tax. The resultant welfare state is a distinct disincentive for otherwise fit and healthy people to work. These people trade freedom for pathetic dependance, in turn debasing and infantilising themselves. Their offspring are consequently born into this miserable existence of reliance.

As the old wisdom goes, power corrupts and absolute power corrupts absolutely. Developing an understanding of how this functions in practice leads to advocating for the abolition of the state.

The truly free market contrasts brilliantly against this bleak image. In the free market, entrepreneurs and consumers exercise their freedom to create and consume what goods and services they prefer, when they want them. The free market naturally regulates itself through processes of supply / demand and voluntary exchange.

Libertarians regard the state as the Supreme, the eternal, the best organised aggressor against the persons and property of the mass of the public.
–Murray Rothbard

The Morality of Profit

Anarcho-capitalist philosophy places great emphasis on the morality of profit, which is seen as both necessary and justifiable. Profit serves as a powerful incentive for individuals to create wealth, innovate, and meet the needs of others. Through exercising their freedom in the form of labor, capital investment, risk-taking, and entrepreneurial skills, individuals are able to earn a just reward in the form of profit. This voluntary exchange of goods and services within the free market promotes true freedom for both sides - buyers and sellers.

The pursuit of profit incentivises innovation, efficient resource allocation, and risk-taking, leading to economic growth and prosperity. Entrepreneurs and businesses are able to continually adjust their production decisions based on changing market conditions, responding to indicators such as changes in consumer preferences, resource availability, and competitive pressures. The price discovery process plays a crucial role in this dynamic system. Government central planning mechanisms such as taxation, regulation, and price controls impede this process.

Healthy competition between sellers results in goods and services being sold at the lowest prices possible, providing consumers with the freedom to do more with their own money. By contributing to the process of price discovery, entrepreneurs and businesses play an important role in shaping economic activity in a market economy.

The pursuit of profit is viewed as a justifiable and morally sound endeavour, in line with the principles of individual rights, property rights, and voluntary exchange. An example of this can be seen in a software developer who invests their own capital and labour into developing a new software product that meets the needs of consumers. By selling licenses for their software at a sustainable price to customers who voluntarily choose to purchase it, they are able to earn a just reward for their efforts and innovation.

Anarcho-capitalists believe that individuals have the right to own and control the fruits of their labour, and so voluntary exchanges based on mutual consent are morally legitimate.

Profits are a signal telling the entrepreneur where resources are most urgently needed and where they can be put to best use. High profits encourage people to enter an industry and increase the supply of goods and services, which eventually lowers prices for consumers.
–Milton Friedman

The Dangers of Collectivism

Anarcho-capitalists argue that collectivist ideologies such as socialism, communism, and fascism are inherently coercive and oppressive. Collectivism necessitates the loss of individual liberty, because the interests of the collective or the group are prejudiced over those of the individual. These ideologies inevitably lead to the concentration of power, which entrenches perceived political support and legitimacy for the government.

Once a collectivist system has been installed, the government consolidates power and asserts authority over various aspects of people's lives, such as the economy, social structures, and decision-making processes. The government ensures its perceived power is entrenched within society. This is a big incentive for governments to promote and implement collectivism.

Collectivist ideologies align with the goals and interests of the state. For example, socialist and communist ideologies advocate for state ownership and control of the means of production, which aligns with the state's desire for economic control and intervention. This coalesces with government’s objective to expand power and control over society.

In contrast, our philosophy values freedom through individualism and voluntary cooperation. This ensures individuals freely associate and disassociate with others, based on their own interests and preferences and needs.

Socialism in general has a record of failure so blatant that only an intellectual could ignore or evade it.
-Thomas Sowell

Conclusion

Anarcho-capitalism, by combining the fundamentals of anarchism and capitalism, empowers people to escape the shackles of poverty.

At the conjunction of anarchism and capitalism, there we find true freedom.

So that the record of history is absolutely crystal clear. That there is no alternative way, so far discovered, of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system.
-Milton Friedman