Rothbard's World examined...

This appeared in the local newspaper of my cousin. She knew it would be of interest to me. I thought some of you would enjoy it as well…

October 22, 2010

Your Opinion: Dissolution of the state, in practice

Anonymous CNHI The Tifton Gazette Fri Oct 22, 2010, 10:06 AM EDT

TIFTON — Karl Marx envisioned a classless society in which the state (i.e. government) would wither away. You can judge the success or failure of his system by looking at the history of those countries which it ensnared. The only one with any success is China, and that is because its leaders threw Marx out and took up a carefully controlled militaristic capitalism designed to ensure the security of an empowered elite, the antithesis of a classless society.

On the opposite end of the political and economic spectrum, extreme capitalists urge the expunging of all vestiges of “socialism” from their imagined capitalist utopia, reduction or elimination of taxes, and reduction of government to the regulatory equivalent of a wet noodle.

Interestingly enough, there is an ideological fringe of capitalist economic theory which advocates the dissolution of the state. Murray Rothbard, the principal advocate of “Anarcho-Capitalism,” wants to go beyond even “laissez-faire” capitalism to a system in which each person is his own free agent and in which there is no state to regulate either the people or their practice of free enterprise.

Let’s see how such a system might operate in practice. The government, being non-existent, owns nothing; individuals or corporations own literally everything. This is the opposite of Communism, where the state owns everything and the people nothing. Let’s imagine:

You visit the People’s Library Co., housed in the former public library. You ask to browse the stacks but are told they are closed “to protect our investment.” The three books you want are available for one week for a fee of $36, payable in banknotes printed by the First Capital Bank. A branch is located across the street. You can exchange your other currency there. For a fee.

You take your family to the Free Enterprise Park, formerly the City Park. The attendant counts heads and asks ages and assesses a fee of $125 for one hour, with no liability to the park for injuries.

Meanwhile, you learn that the house of a lady down the street burned down. She had called Red Hot Fire Service about a grease fire in her kitchen. A man with a foreign accent answered and asked for her address and account number. She gave that information, but he noted that she had not paid last month’s fire service bill. He informed her that the fire truck could not be dispatched until payment was received. This was clearly stated in her contract, she was told. She asked where he was located. “India,” he replied. “But the fire station is only a mile from my house and my house is burning.”

You receive your mail, after paying the $8.50 delivery fee to the Daily Postal Co., and notice an unexplained reduction in your monthly retirement check from Capital Enterprises Senior Retirement Investment Services. You call to enquire and are told that the shareholders of the company are entitled to a profit in the form of a reasonable dividend in return for their investment. Additionally, the board of directors, being highly skilled economists and fund managers, are entitled to adequate compensation for their labors. However, you are also informed that your stake in the fund is completely portable and you are free to transfer it to a different company “if you are unhappy with our services.”

You are a veteran and have a bum knee. You visit the building where the Veterans Hospital used to be located. The sign reads “Investors Hospital Corporation.” You manage to locate your former doctor’s office and speak to his office manager who informs you that since the transfer from socialism to capitalism, your pre-existing condition is not eligible for treatment under the new arrangement with your insurance because the treatment would put undue stress on corporate profits and inconvenience the stockholders. You are stopped by Muscle Men Security Service and assessed $150 for speeding. They keep a 25 percent commission and haul you before a Citizens’ Court where you are charged another $250 for being rude to the Muscle Men. The court collects $175 in costs for its shareholders.

On your way home, you notice a small group of homeless people scavenging a dumpster behind the former city hall. These are, you realize, the former socialist city commissars. Perhaps they are looking for discarded documents to sell to the new Capitalist Museum Company for the historical display about the former socialist era.

One finds a small book and begins reading aloud. You stop to listen: “There is a deep reassurance for the frustrated in witnessing the downfall of the fortunate and the disgrace of the righteous. They see in a general downfall an approach to the general brotherhood of all. Chaos, like the grave, is a haven of equality. Their burning conviction that there must be a new life and a new order is fueled by the realization that the old will have to be razed to the ground before the new can be built. Their clamor for a millenium is shot through with a hatred for all that exists, and a craving for the end of the world.” (Eric Hoffer in “The True Believer”, section 74).

Sunday comes, and you can attend your choice of a branch of the Corporate Church. The CEO or his rep will be teaching on “The New Corporatism.” Tithes are 20 percent. Those not attending will receive bills for 30 percent, a copy of the teaching and a pamphlet on what is and is not allowed.

Dick Marti

Monday you recieve your paycheck and are glad that you now able to make many times what you would make under socialism.

“I thought some of you would enjoy it as well…”

Ahhh, why?

“You visit the People’s Library Co., housed in the former public library.”

And how does this one company come to own the whole library? Eh? The most important part is completely ignored, and not even addressed… pathetic.

“You ask to browse the stacks but are told they are closed “to protect our investment.””

Oh yeah, because the best way to sell things is to hide them from the customer. I’m sorry, but this is beyond retarded.

Newsagents must be real dumb then! The best way to sell magazines and newspapers is not at the very front in the prime advertising space - but out the back being “protected” from the eyes of potential buyers!? DUHH!

“The three books you want are available for one week for a fee of $36”

They’d be available online for free. To print them, could be done on print on demand for probably $5.

“payable in banknotes printed by the First Capital Bank.”

What? Printed? lmao.

“You can exchange your other currency there. For a fee.”

Hahaha, you’re now being charged to use a medium of exchange? lol.

That’s just the first “imaginary” paragraph… what is this crap. Someone want to carry on?

In my opinion this article is just a rant designed to ridicule. Lots of baseless FUD, central planner fallacy and straw man. If anything it is frustrating to read it and to think that some may take it seriously.

I’ll continue :stuck_out_tongue:

“You can exchange your other currency there. For a fee.”

Even more strange is that they think you’d have to physically go to some bank and exchange for their currency. What happened to credit/debit cards and automatic transactions? I can pay in any european shop with my visa card in pounds, despite the currency difference.

" individuals or corporations own literally everything"

And of course people immediately imagine corporations as they are today. Who’s going to limit their liability if the state isn’t here?

“The attendant counts heads and asks ages and assesses a fee of $125 for one hour, with no liability to the park for injuries.”

Why, in the land of total free competition, is everything so expensive? This journalist seems to lack an understanding of how prices form.

“Meanwhile, you learn that the house of a lady down the street burned down. She had called Red Hot Fire Service about a grease fire in her kitchen. A man with a foreign accent answered and asked for her address and account number. She gave that information, but he noted that she had not paid last month’s fire service bill. He informed her that the fire truck could not be dispatched until payment was received. This was clearly stated in her contract, she was told. She asked where he was located. “India,” he replied. “But the fire station is only a mile from my house and my house is burning.””

If I owned the fire service, i’d put her fire out, and then charge her for her bills in arrears, maybe with interest. It’s good PR, retains a customer (rather than creating an angry ex-customer with an axe to grind), and for god’s sake it’s plain decency. Oh and also, without minimum wages, there’d be little reason to outsource labour to India (there are some call centres here in the UK, and this is despite minimum wage laws)

“You receive your mail, after paying the $8.50 delivery fee to the Daily Postal Co”

Since when are delivery charges for mail posted upon delivery, rather than through stamps beforehand? Also, this journalist must not have heard of the kind of price reductions competition caused when Lysander Spooner operated his mail service.

“unexplained reduction in your monthly retirement check from Capital Enterprises Senior Retirement Investment Services.” and then that thing about greedy managers

I’ve yet to see a private pension fund that stipulates in a contract that “your pension payments, rather than being fixed and predetermined, are actually subject to our whims regarding our own bonuses” which is basically what they’re saying here. You’d think that he would describe correctly at least those services that already exist privately.

I’m not even going to bother with the hospital and speeding crap.

" Sunday comes, and you can attend your choice of a branch of the Corporate Church"

But this is by far the funniest. The idea that the church (and many of it’s denominations and branches), after being held privately for almost 2000 years, suddenly becomes a new incorporated entity (does incorporation in the present form even exist? quite the assumption there). He then loses me completely on the rest about the CEO teaching something about corporatism.

Edit: I’ve just realised, he probably means to say that corporatism will become a new religion.

Anyway, my conclusion is this person severely lacks imagination and education in economics and how society functions in general. The machinery of freedom is probably a good place to start. Either that or this is a purposeful and deceitful collection of strawmen.

Libraries and parks: The article assumes that everything we get from the govt now is free. Free libraries and free parks. But no, we pay for them. All of us, even those who will never read a book or go the park.

Fire dept: Odd how that firefighting story came true recently, with a fire dept run by the govt. The mayor of the town defended the decision to let the house burn down.

Post office: Funny how the govt makes it illegal to compete with their post office. After all, no one can stand a chance charging $8.50 compared to the govt 50 cents, right?

Retirement rip off: This is supposed to be contrasted with the greatest Ponzi scheme in the world, Social Security. Which is so succesful it is bankrupting the country.

Veteran’s Hospital: http://thetruthwins.com/archives/the-horror-of-government-run-veteran-health-care

Muscle Men Security: http://www.google.com/search?q=site%3Alewrockwell.com+police In short, we have those right now, the police.

Socialist city comissars going through dumpsters for some food: This one rings true. They probably cannot get an honest job.

Eric Hoffer: Nothing has to be razed to the ground. It’s very simple: You get to keep all your money. Why is this bad?

Corporate Church: Where did this fantasy come from? Oh, yes, it reminds me of taxes. But those are much higher than 20%.

Summing up: When the govt provides a service, it is either more expensive than what the private sector can provide [in which case who needs the govt] or less expensive, even free. Clearly, the latter case is impossible to be true for everyone. If everyone is getting it “free”, who is actaully paying for it? Does the gov’t have a magic wand that makes everything cheaper?

Obviously, the guy getting it “free” is either [over]paying for it with his own taxes, or else someone elses taxes are paying for it.

So if the article is warning us of the sad new world that awaits us when other people stop paying our bills, it should adopt a different tone. It should praise joining street gangs or the mafia as well.

In a world with no artificial barriers to entry and no forced payments to the politically connected.. everything would be super expensive and retarded!

It just makes sense!..

Yea, and I’m the pope of the Corporate Church.

Instead of ‘in practice’ it should read ‘in my imagination’.

This all sounds similar to Kirk Cameron trying to explain evolution through photoshopped ‘crocoducks’. Obviously, if the earth wasn’t 6,000 years old and evolution happened, we’d be turning back and forth into monkeys. And there’d be crocoducks running around everywhere.

“Yea, and I’m the pope of the Corporate Church.”

It would sicken me if there were competing religious doctrines; like a market for God! Or if any of the religions out there took in large sums of money. Or if religions saught to potentially monopolize God through claims to their being the only one that is true. Heck, that type of religion would be almost like buying your way into heaven. And with that type of free wheeling capitalism, you’d possibly die and go straight to hell not knowing you’d bought the wrong stairway. And certainly no policeman could then arrest the fraudsters.

Good thing that will never happen except in a ridiculous topsy turvy ‘capitalist utopia’.

Remember Rothbard’s law that people tend to specialize at what they are worst at.

So you’re saying Rothbard was a terrible political-economist?

It’s sort of a joke he made because he found that economists and historians were often better at every other subject that they wrote about.

Does this mean Rothbard had an innate talent as a chef?

There’s a Rothbardian cookbook? I have got to see that..

I want to make a joke about “buttering its toast at the margarine” or something. But im not that clever.