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Why is it in the news?

  • Javier Milei, a self-professed anarcho-capitalist, gained prominence by winning the presidential elections in Argentina.

About Anarcho-Capitalism

  • Advocates for the elimination of the State’s role in governance.
  • Delegates law and order responsibilities to private entities operating within a free-market system.
  • Coined by American libertarian economist Murray Rothbard.
  • Roots trace back to Belgian political economist Gustave de Molinari, considered the first anarcho-capitalist.
  • Contemporary proponents include David Friedman, Edward Stringham, and Michael Huemer.

Arguments by Anarcho-Capitalists

  • Argue that private companies in a free market can deliver efficient and high-quality policing and legal services.
  • Attributes this efficiency to the market’s demand-driven nature, where companies must cater to customer needs for survival.
  • Private companies depend on customer patronage, ensuring a focus on serving customer needs effectively.
  • Competition among private police and courts ensures high service quality and affordability.

Critics of Anarcho-Capitalism

  • Critics argue that delegating policing and legal services to multiple private firms within a single region could lead to conflicts among armed private groups, resulting in chaos.
  • They contend that a market-driven approach to police protection and legal adjudication could disproportionately favour the wealthy.
  • Wealthy individuals might escape justice by paying more to private entities, leaving the poor without effective recourse.

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