Why is it in the news?
- Javier Milei, a self-professed anarcho-capitalist, gained prominence by winning the presidential elections in Argentina.
- 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.