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       Έτσι θα
       δουλεύει ο
       Αναρχοκαπιταλισμός!
   DIR By: FringeElements
       Date: December 5, 2012, 12:48 am
       ---------------------------------------------------------
       Murray Rothbard delivered this talk 32 years ago at the American
       Society for Political and Legal Philosophy (ASPLP), Washington,
       DC: December 28, 1974. It was first published in The Libertarian
       Forum, volume 7.1, January 1975, available in PDF
  HTML http://www.mises.org/journals/lf/1975/1975_01.pdf.
       In attempting to outline how a "society without a state" – that
       is, an anarchist society – might function successfully, I would
       first like to defuse two common but mistaken criticisms of this
       approach. First, is the argument that in providing for such
       defense or protection services as courts, police, or even law
       itself, I am simply smuggling the state back into society in
       another form, and that therefore the system I am both analyzing
       and advocating is not "really" anarchism.
       This sort of criticism can only involve us in an endless and
       arid dispute over semantics. Let me say from the beginning that
       I define the state as that institution which possesses one or
       both (almost always both) of the following properties: (1) it
       acquires its income by the physical coercion known as
       "taxation"; and (2) it asserts and usually obtains a coerced
       monopoly of the provision of defense service (police and courts)
       over a given territorial area. An institution not possessing
       either of these properties is not and cannot be, in accordance
       with my definition, a state.
       On the other hand, I define anarchist society as one where there
       is no legal possibility for coercive aggression against the
       person or property of an individual. Anarchists oppose the state
       because it has its very being in such aggression, namely, the
       expropriation of private property through taxation, the coercive
       exclusion of other providers of defense service from its
       territory, and all of the other depredations and coercions that
       are built upon these twin foci of invasions of individual
       rights.
       Nor is our definition of the state arbitrary, for these two
       characteristics have been possessed by what is generally
       acknowledged to be states throughout recorded history. The
       state, by its use of physical coercion, has arrogated to itself
       a compulsory monopoly of defense services over its territorial
       jurisdiction. But it is certainly conceptually possible for such
       services to be supplied by private, non-state institutions, and
       indeed such services have historically been supplied by other
       organizations than the state. To be opposed to the state is then
       not necessarily to be opposed to services that have often been
       linked with it; to be opposed to the state does not necessarily
       imply that we must be opposed to police protection, courts,
       arbitration, the minting of money, postal service, or roads and
       highways. Some anarchists have indeed been opposed to police and
       to all physical coercion in defense of person and property, but
       this is not inherent in and is fundamentally irrelevant to the
       anarchist position, which is precisely marked by opposition to
       all physical coercion invasive of, or aggressing against, person
       and property.
       The crucial role of taxation may be seen in the fact that the
       state is the only institution or organization in society which
       regularly and systematically acquires its income through the use
       of physical coercion. All other individuals or organizations
       acquire their income voluntarily, either (1) through the
       voluntary sale of goods and services to consumers on the market,
       or (2) through voluntary gifts or donations by members or other
       donors. If I cease or refrain from purchasing Wheaties on the
       market, the Wheaties producers do not come after me with a gun
       or the threat of imprisonment to force me to purchase; if I fail
       to join the American Philosophical Association, the association
       may not force me to join or prevent me from giving up my
       membership. Only the state can do so; only the state can
       confiscate my property or put me in jail if I do not pay its tax
       tribute. Therefore, only the state regularly exists and has its
       very being by means of coercive depredations on private
       property.
       Neither is it legitimate to challenge this sort of analysis by
       claiming that in some other sense, the purchase of Wheaties or
       membership in the APA is in some way "coercive." Anyone who is
       still unhappy with this use of the term "coercion" can simply
       eliminate the word from this discussion and substitute for it
       "physical violence or the threat thereof," with the only loss
       being in literary style rather than in the substance of the
       argument. What anarchism proposes to do, then, is to abolish the
       state, that is, to abolish the regularized institution of
       aggressive coercion.
       It need hardly be added that the state habitually builds upon
       its coercive source of income by adding a host of other
       aggressions upon society, ranging from economic controls to the
       prohibition of ****ography to the compelling of religious
       observance to the mass murder of civilians in organized warfare.
       In short, the state, in the worlds of Albert Jay Nock, "claims
       and exercises a monopoly of crime" over its territorial area.
       The second criticism I would like to defuse before beginning the
       main body of the paper is the common charge that anarchists
       "assume that all people are good" and that without the state no
       crime would be committed. In short, that anarchism assumes that
       with the abolition of the state a New Anarchist Man will emerge,
       cooperative, humane, and benevolent, so that no problem of crime
       will then plague the society. I confess that I do not understand
       the basis for this charge. Whatever other schools of anarchism
       profess – and I do not believe that they are open to the charge
       – I certainly do not adopt this view. I assume with most
       observers that mankind is a mixture of good and evil, of
       cooperative and criminal tendencies.
       In my view, the anarchist society is one which maximizes the
       tendencies for the good and the cooperative, while it minimizes
       both the opportunity and the moral legitimacy of the evil and
       the criminal. If the anarchist view is correct and the state is
       indeed the great legalized and socially legitimated channel for
       all manner of antisocial crime – theft, oppression, mass murder
       – on a massive scale, then surely the abolition of such an
       engine of crime can do nothing but favor the good in man and
       discourage the bad.
       A further point: in a profound sense, no social system, whether
       anarchist or statist, can work at all unless most people are
       "good" in the sense that they are not all hell-bent upon
       assaulting and robbing their neighbors. If everyone were so
       disposed, no amount of protection, whether state or private,
       could succeed in staving off chaos. Furthermore, the more that
       people are disposed to be peaceful and not aggress against their
       neighbors, the more successfully any social system will work,
       and the fewer resources will need to be devoted to police
       protection. The anarchist view holds that, given the "nature of
       man," given the degree of goodness or badness at any point in
       time, anarchism will maximize the opportunities for the good and
       minimize the channels for the bad. The rest depends on the
       values held by the individual members of society. The only
       further point that needs to be made is that by eliminating the
       living example and the social legitimacy of the massive
       legalized crime of the state, anarchism will to a large extent
       promote peaceful values in the minds of the public.
       We cannot of course deal here with the numerous arguments in
       favor of anarchism or against the state, moral, political, and
       economic. Nor can we take up the various goods and services now
       provided by the state and show how private individuals and
       groups will be able to supply them far more efficiently on the
       free market. Here we can only deal with perhaps the most
       difficult area, the area where it is almost universally assumed
       that the state must exist and act, even if it is only a
       "necessary evil" instead of a positive good: the vital realm of
       defense or protection of person and property against aggression.
       Surely, it is universally asserted, the state is at least
       vitally necessary to provide police protection, the judicial
       resolution of disputes and enforcement of contracts, and the
       creation of the law itself that is to be enforced. My contention
       is that all of these admittedly necessary services of protection
       can be satisfactorily and efficiently supplied by private
       persons and institutions on the free market.
       One important caveat before we begin the body of this paper: new
       proposals such as anarchism are almost always gauged against the
       implicit assumption that the present, or statist system works to
       perfection. Any lacunae or difficulties with the picture of the
       anarchist society are considered net liabilities, and enough to
       dismiss anarchism out of hand. It is, in short, implicitly
       assumed that the state is doing its self-assumed job of
       protecting person and property to perfection. We cannot here go
       into the reasons why the state is bound to suffer inherently
       from grave flaws and inefficiencies in such a task. All we need
       do now is to point to the black and unprecedented record of the
       state through history: no combination of private marauders can
       possibly begin to match the state's unremitting record of theft,
       confiscation, oppression, and mass murder. No collection of
       Mafia or private bank robbers can begin to compare with all the
       Hiroshimas, Dresdens, and Lidices and their analogues through
       the history of mankind.
       This point can be made more philosophically: it is illegitimate
       to compare the merits of anarchism and statism by starting with
       the present system as the implicit given and then critically
       examining only the anarchist alternative. What we must do is to
       begin at the zero point and then critically examine both
       suggested alternatives. Suppose, for example, that we were all
       suddenly dropped down on the earth de novo and that we were all
       then confronted with the question of what societal arrangements
       to adopt. And suppose then that someone suggested: "We are all
       bound to suffer from those of us who wish to aggress against
       their fellow men. Let us then solve this problem of crime by
       handing all of our weapons to the Jones family, over there, by
       giving all of our ultimate power to settle disputes to that
       family. In that way, with their monopoly of coercion and of
       ultimate decision making, the Jones family will be able to
       protect each of us from each other." I submit that this proposal
       would get very short shrift, except perhaps from the Jones
       family themselves. And yet this is precisely the common argument
       for the existence of the state. When we start from zero point,
       as in the case of the Jones family, the question of "who will
       guard the guardians?" becomes not simply an abiding lacuna in
       the theory of the state but an overwhelming barrier to its
       existence.
       A final caveat: the anarchist is always at a disadvantage in
       attempting to forecast the shape of the future anarchist
       society. For it is impossible for observers to predict voluntary
       social arrangements, including the provision of goods and
       services, on the free market. Suppose, for example, that this
       were the year 1874 and that someone predicted that eventually
       there would be a radio-manufacturing industry. To be able to
       make such a forecast successfully, does he have to be challenged
       to state immediately how many radio manufacturers there would be
       a century hence, how big they would be, where they would be
       located, what technology and marketing techniques they would
       use, and so on? Obviously, such a challenge would make no sense,
       and in a profound sense the same is true of those who demand a
       precise portrayal of the pattern of protection activities on the
       market. Anarchism advocates the dissolution of the state into
       social and market arrangements, and these arrangements are far
       more flexible and less predictable than political institutions.
       The most that we can do, then, is to offer broad guidelines and
       perspectives on the shape of a projected anarchist society.
       One important point to make here is that the advance of modern
       technology makes anarchistic arrangements increasingly feasible.
       Take, for example, the case of lighthouses, where it is often
       charged that it is unfeasible for private lighthouse operators
       to row out to each ship to charge it for use of the light. Apart
       from the fact that this argument ignores the successful
       existence of private lighthouses in earlier days, as in England
       in the eighteenth century, another vital consideration is that
       modern electronic technology makes charging each ship for the
       light far more feasible. Thus, the ship would have to have paid
       for an electronically controlled beam which could then be
       automatically turned on for those ships which had paid for the
       service.
       Let us turn now to the problem of how disputes – in particular
       disputes over alleged violations of person and property – would
       be resolved in an anarchist society. First, it should be noted
       that all disputes involve two parties: the plaintiff, the
       alleged victim of the crime or tort and the defendant, the
       alleged aggressor. In many cases of broken contract, of course,
       each of the two parties alleging that the other is the culprit
       is at the same time a plaintiff and a defendant.
       An important point to remember is that any society, be it
       statist or anarchist, has to have some way of resolving disputes
       that will gain a majority consensus in society. There would be
       no need for courts or arbitrators if everyone were omniscient
       and knew instantaneously which persons were guilty of any given
       crime or violation of contract. Since none of us is omniscient,
       there has to be some method of deciding who is the criminal or
       lawbreaker which will gain legitimacy; in short, whose decision
       will be accepted by the great majority of the public.
       In the first place, a dispute may be resolved voluntarily
       between the two parties themselves, either unaided or with the
       help of a third mediator. This poses no problem, and will
       automatically be accepted by society at large. It is so accepted
       even now, much less in a society imbued with the anarchistic
       values of peaceful cooperation and agreement. Secondly and
       similarly, the two parties, unable to reach agreement, may
       decide to submit voluntarily to the decision of an arbitrator.
       This agreement may arise either after a dispute has arisen, or
       be provided for in advance in the original contract. Again,
       there is no problem in such an arrangement gaining legitimacy.
       Even in the present statist era, the notorious inefficiency and
       coercive and cumbersome procedures of the politically run
       government courts has led increasing numbers of citizens to turn
       to voluntary and expert arbitration for a speedy and harmonious
       settling of disputes.
       Thus, William C. Wooldridge has written that
       Arbitration has grown to proportions that make the courts a
       secondary recourse in many areas and completely superfluous in
       others. The ancient fear of the courts that arbitration would
       "oust" them of their jurisdiction has been fulfilled with a
       vengeance the common-law judges probably never anticipated.
       Insurance companies adjust over fifty thousand claims a year
       among themselves through arbitration, and the American
       Arbitration Association (AAA), with headquarters in New York and
       twenty-five regional offices across the country, last year
       conducted over twenty-two thousand arbitrations. Its
       twenty-three thousand associates available to serve as
       arbitrators may outnumber the total number of judicial personnel
       … in the United States…. Add to this the unknown number of
       individuals who arbitrate disputes within particular industries
       or in particular localities, without formal AAA affiliation, and
       the quantitatively secondary role of official courts begins to
       be apparent.[1]
       Wooldridge adds the important point that, in addition to the
       speed of arbitration procedures vis-à-vis the courts, the
       arbitrators can proceed as experts in disregard of the official
       government law; in a profound sense, then, they serve to create
       a voluntary body of private law. "In other words," states
       Wooldridge, "the system of extralegal, voluntary courts has
       progressed hand in hand with a body of private law; the rules of
       the state are circumvented by the same process that circumvents
       the forums established for the settlement of disputes over those
       rules…. In short, a private agreement between two people, a
       bilateral 'law,' has supplanted the official law. The writ of
       the sovereign has ceased to run, and for it is substituted a
       rule tacitly or explicitly agreed to by the parties." Wooldridge
       concludes that "if an arbitrator can choose to ignore a penal
       damage rule or the status of limitations applicable to the claim
       before him (and it is generally conceded that he has that
       power), arbitration can be viewed as a practically revolutionary
       instrument for self-liberation from the law…."[2]
       It may be objected that arbitration only works successfully
       because the courts enforce the award of the arbitrator.
       Wooldridge points out, however, that arbitration was
       unenforceable in the American courts before 1920, but that this
       did not prevent voluntary arbitration from being successful and
       expanding in the United States and in England. He points,
       furthermore, to the successful operations of merchant courts
       since the Middle Ages, those courts which successfully developed
       the entire body of the law merchant. None of those courts
       possessed the power of enforcement. He might have added the
       private courts of shippers which developed the body of admiralty
       law in a similar way.
       How then did these private, "anarchistic," and voluntary courts
       ensure the acceptance of their decisions? By the method of
       social ostracism, and by the refusal to deal any further with
       the offending merchant. This method of voluntary "enforcement,"
       indeed provided highly successful. Wooldridge writes that "the
       merchants' courts were voluntary, and if a man ignored their
       judgment, he could not be sent to jail…. Nevertheless, it is
       apparent that … [their] decisions were generally respected even
       by the losers; otherwise people would never have used them in
       the first place…. Merchants made their courts work simply by
       agreeing to abide by the results. The merchant who broke the
       understanding would not be sent to jail, to be sure, but neither
       would he long continue to be a merchant, for the compliance
       exacted by his fellows … provide if anything more effective than
       physical coercion."[3] Nor did this voluntary method fail to
       work in modern times. Wooldridge writes that it was precisely in
       the years before 1920, when arbitration awards could not be
       enforced in the courts,
       that arbitration caught on and developed a following in the
       American mercantile community. Its popularity, gained at a time
       when abiding by an agreement to arbitrate had to be as voluntary
       as the agreement itself, casts doubt on whether legal coercion
       was an essential adjunct to the settlement of most disputes.
       Cases of refusal to abide by an arbitrator's award were rare;
       one founder of the American Arbitration Association could not
       recall a single example. Like their medieval forerunners,
       merchants in the Americas did not have to rely on any sanctions
       other than those they could collectively impose on each other.
       One who refused to pay up might find access to his association's
       tribunal cut off in the future, or his name released to the
       membership of his trade association; these penalties were far
       more fearsome than the cost of the award with which he
       disagreed. Voluntary and private adjudications were voluntarily
       and privately adhered to, if not out of honor, out of the
       self-interest of businessmen who knew that the arbitral mode of
       dispute settlement would cease to be available to them very
       quickly if they ignored an award.[4]
       It should also be pointed out that modern technology makes even
       more feasible the collection and dissemination of information
       about people's credit ratings and records of keeping or
       violating their contracts or arbitration agreements. Presumably,
       an anarchist society would see the expansion of this sort of
       dissemination of data and thereby facilitate the ostracism or
       boycotting of contract and arbitration violators.
       How would arbitrators be selected in an anarchist society? In
       the same way as they are chosen now, and as they were chosen in
       the days of strictly voluntary arbitration: the arbitrators with
       the best reputation for efficiency and probity would be chosen
       by the various parties on the market. As in other processes of
       the market, the arbitrators with the best record in settling
       disputes will come to gain an increasing amount of business, and
       those with poor records will no longer enjoy clients and will
       have to shift to another line of endeavor. Here it must be
       emphasized that parties in dispute will seek out those
       arbitrators with the best reputation for both expertise and
       impartiality and that inefficient or biased arbitrators will
       rapidly have to find another occupation.
       Thus, the Tannehills emphasize:
       the advocates of government see initiated force (the legal force
       of government) as the only solution to social disputes.
       According to them, if everyone in society were not forced to use
       the same court system … disputes would be insoluble. Apparently
       it doesn't occur to them that disputing parties are capable of
       freely choosing their own arbiters…. they have not realized that
       disputants would, in fact, be far better off if they could
       choose among competing arbitration agencies so that they could
       reap the benefits of competition and specialization. It should
       be obvious that a court system which has a monopoly guaranteed
       by the force of statutory law will not give as good quality
       service as will free-market arbitration agencies which must
       compete for their customers….
       Perhaps the least tenable argument for government arbitration of
       disputes is the one which holds that governmental judges are
       more impartial because they operate outside the market and so
       have no vested interests…. Owning political allegiance to
       government is certainly no guarantee of impartiality! A
       governmental judge is always impelled to be partial – in favor
       of the government, from whom he gets his pay and his power! On
       the other hand, an arbiter who sells his services in a free
       market knows that he must be as scrupulously honest, fair, and
       impartial as possible or no pair of disputants will buy his
       services to arbitrate their dispute. A free-market arbiter
       depends for his livelihood on his skill and fairness at settling
       disputes. A governmental judge depends on political pull.[5]
       If desired, furthermore, the contracting parties could provide
       in advance for a series of arbitrators:
       It would be more economical and in most cases quite sufficient
       to have only one arbitration agency to hear the case. But if the
       parties felt that a further appeal might be necessary and were
       willing to risk the extra expense, they could provide for a
       succession of two or even more arbitration agencies. The names
       of these agencies would be written into the contract in order
       from the "first court of appeal" to the "last court of appeal."
       It would be neither necessary nor desirable to have one single,
       final court of appeal for every person in the society, as we
       have today in the United States Supreme Court.[6]
       Arbitration, then, poses little difficulty for a portrayal of
       the free society. But what of torts or crimes of aggression
       where there has been no contract? Or suppose that the breaker of
       a contract defies the arbitration award? Is ostracism enough? In
       short, how can courts develop in the free-market anarchist
       society which will have the power to enforce judgments against
       criminals or contract breakers?
       In the wide sense, defense service consists of guards or police
       who use force in defending person and property against attack,
       and judges or courts whose role is to use socially accepted
       procedures to determine who the criminals or tortfeasors are, as
       well as to enforce judicial awards, such as damages or the
       keeping of contracts. On the free market, many scenarios are
       possible on the relationship between the private courts and the
       police; they may be "vertically integrated," for example, or
       their services may be supplied by separate firms. Furthermore,
       it seems likely that police service will be supplied by
       insurance companies who will provide crime insurance to their
       clients. In that case, insurance companies will pay off the
       victims of crime or the breaking of contracts or arbitration
       awards and then pursue the aggressors in court to recoup their
       losses. There is a natural market connection between insurance
       companies and defense service, since they need pay out less
       benefits in proportion as they are able to keep down the rate of
       crime.
       Courts might either charge fees for their services, with the
       losers of cases obliged to pay court costs, or else they may
       subsist on monthly or yearly premiums by their clients, who may
       be either individuals or the police or insurance agencies.
       Suppose, for example, that Smith is an aggrieved party, either
       because he has been assaulted or robbed, or because an
       arbitration award in his favor has not been honored. Smith
       believes that Jones is the party guilty of the crime. Smith then
       goes to a court, Court A, of which he is a client, and brings
       charges against Jones as a defendant. In my view, the hallmark
       of an anarchist society is one where no man may legally compel
       someone who is not a convicted criminal to do anything, since
       that would be aggression against an innocent man's person or
       property. Therefore, Court A can only invite rather than
       subpoena Jones to attend his trial. Of course, if Jones refused
       to appear or send a representative, his side of the case will
       not be heard. The trial of Jones proceeds. Suppose that Court A
       finds Jones innocent. In my view, part of the generally accepted
       law code of the anarchist society (on which see further below)
       is that this must end the matter unless Smith can prove charges
       of gross incompetence or bias on the part of the court.
       Suppose, next, that Court A finds Jones guilty. Jones might
       accept the verdict, because he too is a client of the same
       court, because he knows he is guilty, or for some other reason.
       In that case, Court A proceeds to exercise judgment against
       Jones. Neither of these instances poses very difficult problems
       for our picture of the anarchist society. But suppose, instead,
       that Jones contests the decision; he then goes to his court,
       Court B, and the case is retried there. Suppose that Court B,
       too, finds Jones guilty. Again, it seems to me that the accepted
       law code of the anarchist society will assert that this ends the
       matter; both parties have had their say in courts which each has
       selected, and the decision for guilt is unanimous.
       Suppose, however, the most difficult case: that Court B finds
       Jones innocent. The two courts, each subscribed to by one of the
       two parties, have split their verdicts. In that case, the two
       courts will submit the case to an appeals court, or arbitrator,
       which the two courts agree upon. There seems to be no real
       difficulty about the concept of an appeals court. As in the case
       of arbitration contracts, it seems very likely that the various
       private courts in the society will have prior agreements to
       submit their disputes to a particular appeals court. How will
       the appeals judges be chosen? Again, as in the case of
       arbitrators or of the first judges on the free market, they will
       be chosen for their expertise and their reputation for
       efficiency, honesty, and integrity. Obviously, appeals judges
       who are inefficient or biased will scarcely be chosen by courts
       who will have a dispute. The point here is that there is no need
       for a legally established or institutionalized single, monopoly
       appeals court system, as states now provide. There is no reason
       why there cannot arise a multitude of efficient and honest
       appeals judges who will be selected by the disputant courts,
       just as there are numerous private arbitrators on the market
       today. The appeals court renders its decision, and the courts
       proceed to enforce it if, in our example, Jones is considered
       guilty – unless, of course, Jones can prove bias in some other
       court proceedings.
       No society can have unlimited judicial appeals, for in that case
       there would be no point to having judges or courts at all.
       Therefore, every society, whether statist or anarchist, will
       have to have some socially accepted cutoff point for trials and
       appeals. My suggestion is the rule that the agreement of any two
       courts, be decisive. "Two" is not an arbitrary figure, for it
       reflects the fact that there are two parties, the plaintiff and
       the defendant, to any alleged crime or contract dispute.
       If the courts are to be empowered to enforce decision against
       guilty parties, does this not bring back the state in another
       form and thereby negate anarchism? No, for at the beginning of
       this paper I explicitly defined anarchism in such a way as not
       to rule out the use of defensive force – force in defense of
       person and property – by privately supported agencies. In the
       same way, it is not bringing back the state to allow persons to
       use force to defend themselves against aggression, or to hire
       guards or police agencies to defend them.
       It should be noted, however, that in the anarchist society there
       will be no "district attorney" to press charges on behalf of
       "society." Only the victims will press charges as the
       plaintiffs. If, then, these victims should happen to be absolute
       pacifists who are opposed even to defensive force, then they
       will simply not press charges in the courts or otherwise
       retaliate against those who have aggressed against them. In a
       free society that would be their right. If the victim should
       suffer from murder, then his heir would have the right to press
       the charges.
       What of the Hatfield-and-McCoy problem? Suppose that a Hatfield
       kills a McCoy, and that McCoy's heir does not belong to a
       private insurance, police agency, or court, and decides to
       retaliate himself? Since under anarchism there can be no
       coercion of the noncriminal, McCoy would have the perfect right
       to do so. No one may be compelled to bring his case to a court.
       Indeed, since the right to hire police or courts flows form the
       right of self-defense against aggression, it would be
       inconsistent and in contradiction to the very basis of the free
       society to institute such compulsion.
       Suppose, then, that the surviving McCoy finds what he believes
       to be the guilty Hatfield and kills him in turn? What then? This
       is fine, except that McCoy may have to worry about charges being
       brought against him by a surviving Hatfield. Here it must be
       emphasized that in the law of the anarchist society based on
       defense against aggression, the courts would not be able to
       proceed against McCoy if in fact he killed the right Hatfield.
       His problem would arise if the courts should find that he made a
       grievous mistake and killed the wrong man; in that case, he in
       turn would be found guilty of murder. Surely, in most instances,
       individuals will wish to obviate such problems by taking their
       case to a court and thereby gain social acceptability for their
       defensive retaliation – not for the act of retaliation but for
       the correctness of deciding who the criminal in any given case
       might be. The purpose of the judicial process, indeed, is to
       find a way of general agreement on who might be the criminal or
       contract breaker in any given case. The judicial process is not
       a good in itself; thus, in the case of an assassination, such as
       Jack Ruby's murder of Lee Harvey Oswald, on public television,
       there is no need for a complex judicial process, since the name
       of the murderer is evident to all.
       Will not the possibility exist of a private court that may turn
       venal and dishonest, or of a private police force that turns
       criminal and extorts money by coercion? Of course such an event
       may occur, given the propensities of human nature. Anarchism is
       not a moral cure-all. But the important point is that market
       forces exist to place severe checks on such possibilities,
       especially in contrast to a society where a state exists. For,
       in the first place, judges, like arbitrators, will prosper on
       the market in proportion to their reputation for efficiency and
       impartiality. Secondly, on the free market important checks and
       balances exist against venal courts or criminal police forces.
       Namely, that there are competing courts and police agencies to
       whom victims may turn for redress. If the "Prudential Police
       Agency" should turn outlaw and extract revenue from victims by
       coercion, the latter would have the option of turning to the
       "Mutual" or "Equitable" Police Agency for defense and for
       pressing charges against Prudential. These are the genuine
       "checks and balances" of the free market, genuine in contrast to
       the phony check and balances of a state system, where all the
       alleged "balancing" agencies are in the hands of one monopoly
       government. Indeed, given the monopoly "protection service" of a
       state, what is there to prevent a state from using its monopoly
       channels of coercion to extort money from the public? What are
       the checks and limits of the state? None, except for the
       extremely difficult course of revolution against a power with
       all of the guns in its hands. In fact, the state provides an
       easy, legitimated channel for crime and aggression, since it has
       its very being in the crime of tax theft, and the coerced
       monopoly of "protection." It is the state, indeed, that
       functions as a mighty "protection racket" on a giant and massive
       scale. It is the state that says: "Pay us for your 'protection'
       or else." In the light of the massive and inherent activities of
       the state, the danger of a "protection racket" emerging from one
       or more private police agencies is relatively small indeed.
       Moreover, it must be emphasized that a crucial element in the
       power of the state is its legitimacy in the eyes of the majority
       of the public, the fact that after centuries of propaganda, the
       depredations of the state are looked upon rather as benevolent
       services. Taxation is generally not seen as theft, nor war as
       mass murder, nor conscription as slavery. Should a private
       police agency turn outlaw, should "Prudential" become a
       protection racket, it would then lack the social legitimacy
       which the state has managed to accrue to itself over the
       centuries. "Prudential" would be seen by all as bandits, rather
       than as legitimate or divinely appointed "sovereigns" bent on
       promoting the "common good" or the "general welfare." And
       lacking such legitimacy, "Prudential" would have to face the
       wrath of the public and the defense and retaliation of the other
       private defense agencies, the police and courts, on the free
       market. Given these inherent checks and limits, a successful
       transformation from a free society to bandit rule becomes most
       unlikely. Indeed, historically, it has been very difficult for a
       state to arise to supplant a stateless society; usually, it has
       come about through external conquest rather than by evolution
       from within a society.
       Within the anarchist camp, there has been much dispute on
       whether the private courts would have to be bound by a basic,
       common law code. Ingenious attempts have been made to work out a
       system where the laws or standards of decision-making by the
       courts would differ completely from one to another.[7] But in my
       view all would have to abide by the basic law code, in
       particular, prohibition of aggression against person and
       property, in order to fulfill our definition of anarchism as a
       system which provides no legal sanction for such aggression.
       Suppose, for example, that one group of people in society holds
       that all redheads are demons who deserve to be shot on sight.
       Suppose that Jones, one of this group, shoots Smith, a redhead.
       Suppose that Smith or his heir presses charges in a court, but
       that Jones's court, in philosophic agreement with Jones, finds
       him innocent therefore. It seems to me that in order to be
       considered legitimate, any court would have to follow the basic
       libertarian law code of the inviolate right of person and
       property. For otherwise, courts might legally subscribe to a
       code which sanctions such aggression in various cases, and which
       to that extent would violate the definition of anarchism and
       introduce, if not the state, then a strong element of
       statishness or legalized aggression into the society.
       But again I see no insuperable difficulties here. For in that
       case, anarchists, in agitating for their creed, will simply
       include in their agitation the idea of a general libertarian law
       code as part and parcel of the anarchist creed of abolition of
       legalized aggression against person or property in the society.
       In contrast to the general law code, other aspects of court
       decisions could legitimately vary in accordance with the market
       or the wishes of the clients; for example, the language the
       cases will be conducted in, the number of judges to be involved,
       and so on.
       There are other problems of the basic law code which there is no
       time to go into here: for example, the definition of just
       property titles or the question of legitimate punishment of
       convicted offenders – though the latter problem of course exists
       in statist legal systems as well.[8] The basic point, however,
       is that the state is not needed to arrive at legal principles or
       their elaboration: indeed, much of the common law, the law
       merchant, admiralty law, and private law in general, grew up
       apart from the state, by judges not making the law but finding
       it on the basis of agreed-upon principles derived either from
       custom or reason.[9] The idea that the state is needed to make
       law is as much a myth as that the state is needed to supply
       postal or police services.
       Enough has been said here, I believe, to indicate that an
       anarchist system for settling disputes would be both viable and
       self-subsistent: that once adopted, it could work and continue
       indefinitely. How to arrive at that system is of course a very
       different problem, but certainly at the very least it will not
       likely come about unless people are convinced of its
       workability, are convinced, in short, that the state is not a
       necessary evil.
       Notes
       [1] William C. Wooldrdige, Uncle Sam, the Monopoly Man (New
       Rochelle, New York: Arlington House, 1970), p. 101.
       [2] Ibid., pp. 103–104.
       [3] Ibid., pp. 95–96.
       [4] Ibid., pp. 100–101.
       [5] Morris and Linda Tannehill, The Market for Liberty (Lansing,
       Michigan: privately printed, 1970), pp. 65–67.
       [6] Ibid., p. 68.
       [7] E.g., David Friedman, The Machinery of Freedom (New York:
       Harper and Row, 1973).
       [8] For an elaboration of these points, see Murray N. Rothbard,
       For a New Liberty (New York: Macmillan, 1973).
       [9] Thus, see Bruno Leoni, Freedom and the Law (Princeton, New
       Jersey: D. Van Nostrand Co., 1961).
       Murray N. Rothbard
  HTML http://www.lewrockwell.com/gordon/gordon11.html
       (1926–1995) was
       dean of the Austrian School, founder of modern libertarianism,
       and chief academic officer of the Mises Institute
  HTML http://www.mises.org/.
       He was also editor – with Lew Rockwell –
       of The Rothbard-Rockwell Report
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       />and appointed Lew as his executor. See his books.
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       Copyright © 2012 by the Ludwig von Mises Institute. Permission
       to reprint in whole or in part is hereby granted, provided full
       credit is given.
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