Law on the market: a debate

I’ve been reading through a great debate of sorts, first encountered in a C4SS anthology. I’m sharing it here, as it’s not everyday that one encounters a semi-live issue getting hashed out by giants in the field.

It starts with Robert Nozick. (Precious little starts with Nozick — we have Randians, Hayekians, Rothbardians, but no Nozickians, and no Nozickian tradition. Although he energized libertarianism as a respectable political philosophy for academics, his narrow scope and silent response to critics seem to have killed his staying power.)

Nozick famously claimed in Anarchy, State and Utopia (1974) that “Individuals have rights, and there are things no person or group may do to them (without violating their rights).” A first reading of Anarchy in the context of institutionalized philosophy makes it seem like a defense of libertarianism from big government, socialistic ideology. But, when Nozick’s connection to the Austro-libertarian anarchists is uncovered, the first part of Anarchy looks much more like a defense of small government from the anarchists.

Nozick tries to deal with the problem of law and police on the marketplace. In Chapter 2 of Anarchy, State and Utopia, he envisions a market model of competing rights-enforcement agencies. Eventually, in the service of their customers, two or more protection agencies will clash. They will fight. This results in the destruction of one (to the immediate monopoly of the other) or the relocation of the customers of each (to the territorial monopoly of each in different jurisdictions). If they choose not to fight because of the high expense, even arbitration can’t prevent a legal monopoly: consolidating to the top through voluntary contracts, government emerges anyway above the agencies. Thus, concludes Nozick, a purely free-market society will evolve into a state through an invisible hand process.

Collected in Free Markets & Capitalism?, published by C4SS, Roderick Long makes an argument against Nozick’s conclusion on the basis of different models of a post-state society (“The Return of Leviathan: Can We Prevent It?” (2013)).

Long points to another argument, this one from Tyler Cowen, that there is no way to save anarchy from collusion leading to monopoly (“Law as a Public Good: The Economics of Anarchy” (1992)).

David Friedman responded to Cowen’s argument the year afterward (“Law as a Private Good: A Response to Tyler Cowen on the Economics of Anarchy“), and Cowen responded back (“Rejoinder to David Friedman on the Economics of Anarchy“). Bryan Caplan, in an unpublished manuscript, critiqued Cowen’s position as well (“Outline of a Critique of Tyler Cowen’s ‘Law as a Public Good’“).

This is a showdown between Nozick and Tyler Cowen on the one hand, and Roderick Long, David Friedman and Bryan Caplan on the other. The whole extended debate is fascinating, but I’m not sure it has a conclusion. Was Nozick correct about the natural emergence of a state? Maybe it will take a NOL writer to finish it off…

 

Lunchtime Links

  1. Delacroix in Morocco | Delacroix in Mexico
  2. The Jews in Europe | The Jews in Europe
  3. Barbarianism ain’t that bad | Barbarian liberty
  4. Why did we start farming? |  Why farms die (and should die)
  5. Daily hell of life in the Soviet bloc | reading Bertrand Russell

Lunchtime Links

  1. Interview with a secessionist
  2. Ducking questions about capitalism
  3. The perverse seductiveness of Fernando Pessoa
  4. Yet in this simple task, a doffer in the USA doffed 6 times as much per hour as an adult Indian doffer.”
  5. Conflicted thoughts on women in medicine
  6. The Devil You Know vs The Market For Lemons (car problems)

What is a “left libertarian”?

I often hear a contrast drawn between “left-” and “right-libertarians.” In fact, I hear it so often, that I have no idea what it could possibly refer to. The history of the word makes it particularly confusing.

The word “libertarian,” prior to, perhaps, the later 20th century, referred to (definitely) left-wing, anarchist philosophies. The point is well-known and harmless. The modern day, American usage of the term refers to a different branch of philosophies, with a common root in classical liberalism. Comparing the left-wing anarchists of old to the Libertarian Party, for instance, would draw an obvious line between left-wing and right-wing politics. There’s nothing wrong or appropriative about this name change. The word “liberal” has also suffered a large definitional change in the United States that it hasn’t in most other countries. It could be argued that most political groups have shifted around under various names, at times co-opting even their ideological opponent’s.

So, “libertarian” to the average joe nowadays means something different than the libertarian socialism espoused by Proudhon or Bakunin. However, it could still be applied; it might just be an anachronism: two very different referents.

Then, for the modern libertarian movement, there again appears a “left” and “right” division. For instance, I hear Cato or the Institute for Humane Studies regarded as left-libertarian, and the Mises Institute as right-libertarian. Bleeding Heart Libertarians is called left-libertarian. These “left” groups are, however, all clearly in favor of mostly free market capitalism. Then there’s Center for a Stateless Society, which labels itself “pro-market anarchist,” and then, when people confuse it for just, I don’t know, anarcho-capitalism, Kevin Carson says he wants to use the word market instead. Maybe capitalism is too long to spell. In any case C4SS is considered left-libertarian. Michelangelo seems to use the term to refer to, again, capitalism-inclined folks. (I also hear Students for Liberty referred to as left- and Young Americans for Liberty more right-libertarian.)

“Left-libertarians” are not all anarchists intent on abolishing the state, but some are; meanwhile, libertarian socialists would hardly call market anarchism an “anarchism” at all, since they oppose private property rights. If you ask them, they generally seem pretty pissed off about the whole name co-opting. Noam Chomsky is, anyway.

So, it looks like there’s the left libertarians, who may be using an American anachronism, but maintain their philosophical etymology just as classical liberals try to. And then there’s the left-libertarians, who would still fall in the bottom-right of the modern political compass, directly to the left of the right-libertarians. Does that sound right? What is the sense in which a libertarian qua libertarian would use the term “left-libertarian”?

It doesn’t usually seem like libertarians use the term left-libertarian to refer to anarchic socialists, but it sometimes does. Hanging out with Marxists only makes it worse. I’m looking for someone who has been around the liberty movement longer than I have to make sense of it.

Minarchism, Anarchism, and Democracy: A Shared Challenge

Minarchism–basically as small a government as we can get away with–is probably the most economically efficient possible way to organize society. A night watchman state providing courts of last resort and just enough military to keep someone worse from taking over.

The trouble (argues my inner anarchist) is that if we’ve got a government–an organization allowed to force/forbid behaviors–we’re already on the slippery slope to abuse of powers through political trading. Without an entrenched culture that takes minarchism seriously it’s only a matter of time before a) the state grows out of control and you’re no longer in a minarchist Utopia, or b) a populace unwilling to do their part allows violent gangs to fill the power vacuum.

Having a government at all is a risky proposition from the perspective of someone worried about the abuse of that power. Better not to risk it at all.

Anarchism relies on the right culture in a similar way. This is clear to critics of anarchism (basically it’s just the minarchists who are willing to take anarchists seriously at all) and is the crux of an important argument against anarchism. Without the right culture, what’s to stop people from just creating some new government? Nothing at all.

In fact, we face the same problem in the military-industrial-nanny-state complex of our imperfect real world. For any government–or lack of government–to work, the ideological framework of the people living in that society has to line up properly. To the extent people are ignorant, distracted, short-sighted, biased, or mean-spirited, we get governance that reflects those flaws.

If we want to live in a better world, we can argue all day about what sort of government we do or don’t want. But ultimately we have to work on improving the culture, because the median voter is still in charge.