I want to talk about some of the main objections that have been given to libertarian anarchism and my attempts to answer them. But before I start giving objections and trying to answer them, there is no point in trying to answer objections to a view unless you have given some positive reason to hold the view in the first place. So, I just want to say briefly what I think the positive case is for it before going on to defend it against objections.
The Case For Libertarian Anarchism
Problems with Forced Monopoly
Think about it this way. What’s wrong with a shoe monopoly? Suppose that I and my gang are the only ones that are legally allowed to manufacture and sell shoes — my gang and anyone else that I authorise, but nobody else. What’s wrong with it? Well, first of all, from a moral point of view, the question is: why us? What’s so special about us? Now in this case, because I’ve chosen me, it is more plausible that I ought to have that kind of monopoly, so maybe I should pick a different example! But still, you might wonder, where do I and my gang get off claiming this right to make and sell something that no one else has the right to make and sell, to provide a good or service no one else has the right to provide. At least as far as you know, I’m just another mortal, another human like unto yourselves (more or less). So, from a moral standpoint I have no more right to do it than anyone else.
Then, of course, from a pragmatic, consequentialist standpoint — well, first of all, what is the likely result of my and my gang having a monopoly on shoes? Well, first of all, there are incentive problems. If I’m the only person who has the right to make and sell shoes, you’re probably not going to get the shoes from me very cheaply. I can charge as much as I want, as long as I don’t charge so much that you just can’t afford them at all or you decide you’re happier just not having the shoes. But as long as you’re willing and able, I’ll charge the highest price that I can get out of you — because you’ve got no competition, nowhere else to go. You also probably shouldn’t expect the shoes to be of particularly high quality, because, after all, as long as they’re barely serviceable, and you still prefer them to going barefoot — then you have to buy them from me.
In addition to the likelihood that the shoes are going to be expensive and not very good, there’s also the fact that my ability to be the only person who makes and sells shoes gives me a certain leverage over you. Suppose that I don’t like you. Suppose you’ve offended me in some way. Well, maybe you just don’t get shoes for a while. So, there’s also abuse-of-power issues.
But, it’s just not the incentive problem, because, after all, suppose that I’m a perfect saint and I will make the best shoes I possibly can for you, and I’ll charge the lowest price I possibly can charge, and I won’t abuse my power at all. Suppose I’m utterly trustworthy. I’m a prince among men (not in Machiavelli’s sense). There is still a problem, which is: how do I know exactly that I’m doing the best job I can with these shoes? After all, there’s no competition. I guess I could poll people to try to find out what kind of shoes they seem to want. But there are lots of different ways I could make shoes. Some of them are more expensive ways of making them, and some are less expensive. How do I know, given that there’s no market, and there’s really not much I can do in the way of profit and loss accounting? I just have to make guesses. So even if I’m doing my best, the quantity I make, the quality I make may not be best suited to satisfy people’s preferences, and I have a hard time finding these things out.