Hi, I’m a new member. I’ve just read about the Free State Project, I hadn’t heard of it before. It sounds great, but it may be a while before the 20,000 are signed up. As to which state will be first, I think Montana will, with Texas second. Montana has only 967,440 to New Hampshires 1.3 million. And it’s just as cold in the winter. Texas is huge, but it has a head start. They have the “Republic of Texas” and several other free type projects that have a longer history.And you rarely shovel snow.
But to propose a somewhat different idea, how about a free city. I’d like to know your thoughts. Mises article on Konkin about agorists was interesting. But I must offer some comments. First, Russia’s black market is too small to matter, then later he says that it may be so productive it is holding up Russia’s entire economy. Is this bad. I’d sure like to live in that black-market community, if it’s that profitable. Second, he says “I see no role whatever for Mr. Konkin and the New Libertarian Alliance or the involvement of the Libertarian Left.” . . “the successful entrepreneurs are not going to be agoric theoreticians like Mr. Konkin but successful entrepreneurs period. What do they need with Konkin and his group? I suggest, nothing at all.” This is a bit like a politician saying “my most importand job is to be re-elected. That’s primary”. And I’ve heard that many times. Who cares! If we need a theoretician we’ll hire one. “Again, experience has shown that they do fine on their own, and that urging them on to black market activities is like exhorting ducks to swim.” Well, yes.
But in this imagined free city I’m not proposing a black market exactly. Maybe black taxes. Suppose we picked a city, not too big. I’ll offer up mine for discussion. Pop. 25,000, very small for a California town. No snow, 1 hour from mountains and beaches. It’s only real advantage is that it has been fighting the state and winning it’s entire life. It’s population is very independent or they would never have moved to this town; they’d be easier converts than most. It’s only big industry is an egg processing plant. Truthfully I’m sure there are better towns to pick.
Now suppose libertarians purposely moved here. We form a group and elect a new city councit. This is easy to do (I’ve done it.) and not really necessary. But most important, we start a bank. This bank only takes physical gold deposits and does not do fractional banking. The bank issues ‘money’ in return for the deposit. The money is 100% redeamable in gold but only by a citizen of the town. The money can only be used in this town. (5 cities in the U.S. have already issued fiat money for local use, the merchants agree to give a discount for purchases using the money.
Since this town is a bedroom community, most people will work other places and receive wages in $USD, which is taxed. They take this to our local bank and buy gold to deposit. (They’d have to deposit some of it in a regular bank for payments for some services and goods.)
The interesting part is that once you can start using some or mostly gold as exchange, it’s not taxable any longer. No more double taxation. Of course that will put limits on investment opportunities for the gold money. So start your own business in town with a friend or two, or hire a college student to work there. (There’s a community college in town.) In time, hopefully you can quit your wage-paying job because your business will support you.
Rothbard didn’t like agorists, and I think the Austrian school will say this also will not work. I want to learn why.
In a state as big as Cal. they won’t even know about it for years.