The Case for the Stateless Society: Law

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Abstract

What is the argument against government? There are several. For one thing, there is automatic exit for failure: businesses that do not earn a profit go bankrupt, and their resources tend to migrate to other, more effective, managers. For another, entrepreneurs operate with their own funds, or those voluntarily entrusted to them. This does not apply to bureaucrats and politicians, in sharp contrast. Perhaps most important, in the case of each and every commercial interaction in the market, buying, selling, renting, lending, borrowing, there is mutual gain at least in the ex ante sense of anticipations, and usually ex post, after the trade, as well. This rarely occurs under statism, at least not with regard to its source of funds, taxation, since it is not voluntary. An exception would be the relatively unimportant cases in which a consumer purchases something from the government, such as a ticket to cross a bridge, or a producer sells something to this organization, such as an airplane. The present paper is an attempt to elaborate upon this considerations.

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