Let me give it another go.
I'll respond to statements in the order they were made:
lubbockjoe wrote:Is the anarchistic model inherently weak militarily, as exists today in Somalia with Al-Shabaab?
It depends. The anarchistic model is inherently weak when it comes to offensive action. Any military action is expensive, and offensive action requires the coordinated sacrifice (both financial and in blood) of many people. Governments find such coordination a lot easier.
When it comes to defensive powers, however, the anarchist model is much stronger. For one thing, there is no single capital or head-of-government whose capture means the end of fighting.
The bottom line is that if the aggressors are highly-motivated and possess overwhelming force, they will succeed whether the defended territory is anarchic or state-run. There are no guarantees. But anarchists will have many tools at their disposal. High-valued commercial and industrial locations will probably be defended professionally, by private forces hired by insurance companies. In lower-valued residential and rural areas aggressors can expect a local militia made of well-armed citizens defending their own homes - never an easy target.
In fact, the resistance forces an aggressor into an ancap territory can expect are precisely the kind of forces which historically over thrown their own well entrenched and partially-locally-supported governments. Unlike colonial occupations, though, the defensive forces would likely come from a society at least as economically advanced as that of the aggressors.
lubbockjoe wrote:Who has more power in your ancap example, the capitalist or the sweatshop worker worthy of pity?
This is not an appropriate question. I suggest you compare the relation between employee and employer to the relation between a consumer and a supermarket. The analogy works very well:
a. In both cases, there is a contractual relation between a larger corporation and an individual (though the size of the corporation can vary from a global corporation like Walmart to a local mom-and-pop grocery store)
b. In both cases, the individual has to contract with somebody in order to survive. In fact, the relation with food providers is much more urgent than the one with an employer.
c. In both cases, the individual has multiple options available to them, though in the employment case there are always going to be more choices available (every food provider is a potential employer, but not every potential employer is a food provider).
Now, let me turn the question back to you: who has more power, a Supermarket or a consumer? In a certain sense, the Supermarket obviously has more power - they can afford to purchased huge quantities of food, rent or buy large spaces, etc. They also determine the price of food on a "take it or leave it" basis.
But in our everyday life, we don't think of ourselves as subjugated to supermarkets. In fact, as consumers, we are routinely courted, offered sales and other deals. Supermarkets invest millions in creating a pleasant shopping experience, offer a wide range of products, etc.
Under normal conditions, this attitude also characterizes the employer-employee relationship. The employer courts employees, trying to offer pleasant working conditions and otherwise works hard to retain their services. Exceptional conditions occur when minimum wage laws or union restrictions force an wage level above market-clearing rate. Then we find an over-supply of labour, and the abuses that come with it.
This state of affairs is comparable to food stores in the Soviet Union, where prices were set politically below market-clearing rate. That creates shortages, and opens the door to rampant abuse and waste.
lubbockjoe wrote:Would they be incorruptible?
Essentially, yes. Being even suspected of being corrupt would be the death sentence of an adjudication agency. Such agency would find it very difficult to attract any new business - who would submit himself voluntarily to the binding judgement of a corrupt agency? Contrast that with the political system. Corrupt politicians may be removed in the next election, through they often try and sometimes succeed to wiggle out of being thrown out of office. In the mean time, people are still subject to their decisions. Judicial corruption has to rise to an indictable level before the judge can be thrown out. In the private sector, a corrupt judge will be out of work in no time.
lubbockjoe wrote:The commoditization of justice kind of cheapens it for me.
Where is justice being more commoditized - when it is supplied through cookie-cutter bureaucratic process in which legislation enacted through a sausage-making-like process ends up applying uniformly to millions of subjects, or when justice is administered by the people that you personally trust?
As for the bidding for restitution value, at least crime victims have a prospect of being paid compensation. In our current system, the victim HAS NO RIGHTS. Put differently, imagine a system in which crime victims indeed own their right for compensation. But rather than being allowed to dispose of that property any way they see fit (after all, they don't have to sell to the highest bidder; they can, for example, transfer their rights to a mutual-legal-aid society), they are forced to forfeit those rights to a monopolistic organization (the state), for which they are offered no value whatsoever.
lubbockjoe wrote:That sounds like sliding scale justice to me.
This is a routine aspect of today's jurisprudence. In showing damages, earning potential is routinely taken into account.
lubbockjoe wrote:OK. No poor people allowed...
Where then would you get that sweatshop labor?
Who ever said poor people wouldn't be allowed? I said "people not carrying proper insurance...". Low-cost insurance would be highly affordable for people with no prior convictions. It will cost a small fraction of the amount they routinely pay for food.
But some entrepreneurs may well want to tap into the potential pool of labour which, for whatever reason, finds it difficult to obtain coverage. The requirement for insurance, after all, is not a national mandate. It varies from landlord to landlord. A sweatshop owner may well decide to forego the requirement, provided alternative security measures are in place. Landlord in low-income neighbourhood, for example, may well accept lower-cap insurance policies affordable to their residents. The market will adapt.
lubbockjoe wrote:Also, would the charging of interest be allowed in your ancap society? Would one of those incorruptible private firms handle that too?
I am not sure what's special about charging interest. Charging interest is a routine component of commercial loans. As long as the terms are agreed in advance, I don't see the problem.
As for the tone of your last sentence, please consider applying it even-handedly to the political alternative to my private proposed solutions. One can just as easily (in fact, much MUCH more easily, as I demonstrated above) ask questions about incorruptibility about players in the political arena.
Melodramatic wrote:The peasants might have profited from the kings rule, but the real reason they did not revolt was that he controlled (owned) the lands. The same goes for the owner of capital and the workers in the industrial (modern) world.
The huge difference is that the king used force to take over vast areas to which he had no right. Private property owners in a free society (though not necessarily private property owners working under the wings of the state, hence many people's confusion) never, in practice, get to own vast areas of land. Peasants are much more likely to either own their own land, or have a choice amongst many landlords (in other words, landlords have to compete for peasant labour).
Melodramatic wrote:That's just the nature of private capital.
It is true that a free society will see inequalities emerging. However, there is no reason to believe that inequality will steadily expand. Economies of scale, for example, only work up to a certain size, above which dis-economies of scale start to overwhelm them. The size depends on industry and technology, but is always present. Free markets, while indeed improving the lot of the talented by a greater degree than they do that of the unskilled, provide huge benefit to the latter. Compare the lot of an unskilled worker in the US vs. that of one in India.
Melodramatic wrote:Do you deny the fact that property enables an owner to give a worker a smaller portion of the product than he would have gotten if the product was divided based on the contribution to production?
Of course I deny that. In fact, free association of employees and employers and competition amongst employers (actual and potential) creates a situation in which workers have to be paid their marginal contribution to production.
How else do you propose to measure "contribution to production"?
grassroots1 wrote:How can you deny that money gives a person influence in all sorts of ways?
There is a difference between influence and power. Demagogues have lots of influence on people, but I don't see anybody proposing to outlaw public speaking. In fact, all non-libertarians routinely advocate a system in which some people (politicians) have incredible powers, much greater than those enjoyed by the wealthiest member of a free society.
The power of money in a free society is only to do good, never evil. Where money gets a bad reputation is when it is coupled with the political system. Money can (and is routinely) used to influence elections or politicians directly. It is through those politicians that it becomes a coercive force.
grassroots1 wrote:Capitalism leads to the concentration of wealth and power. Without an effective democratic system, we can't hope to check that power.
So to combat that theoretical concentration of power (which never actually happened historically), the proposed solution is to create a coercive monopoly of power - the greatest concentration of power imaginable in society???
With political actors to influence, spending money to buy influence is a rational choice. Political actors (much more than private ones) are easily and routinely corrupted. How else do you explain sugar quotas and ethanol subsidies?
grassroots1 wrote:The very society you live in is proof of the influence of money.
It is only a proof of the corrupting power of the political system. Show me one example where money is corrupting, exploitative or is otherwise used to do evil rather than good, without the enthusiastic backing of the political system.
grassroots1 wrote:We can rehash the same examples I've provided a million times. Company towns, employers wielding control over the lives of workers.
Let me rehash my arguments for potentially new readership.
I never aim to protect historic actions taken by anybody, not even private enterprises. Private players are just as corruptible as any other person. What makes a private system better is the system as a whole, not the nature of the individual players within it.
When we examine historic records, we have to decide on one of two choices:
a. The private actors in the historic record violated people's (libertarian) property rights. If that is the case, their action has no bearing on the behaviour of private actors within the context of a system in which such rights are respected. Clearly, 19th century America was no such system. The historic failure to protect property rights falls squarely on the shoulders of that organization within society which was charged with (and claimed the monopoly for) protecting property rights - government.
b. The private actors in the historic records did some mischief without violating people's property rights. That is a more interesting case, and I would challenge anybody to show a single example.
To take the case of "company towns", grassroots1 needs to decide how to view them/
a. The operators of those company towns used violence to force employees to remain within the towns, reneged on their contractual obligations, or misled prospective employees. In other words, they were criminals, and government failed to stop them. A strong argument
against government.
b. The operators didn't use violence. They merely "exploited" workers who had no choice (as they needed to earn a living) but to comply. But then the natural question becomes - what would have those workers done if the "company towns" didn't even exist? Clearly, they would have either died of starvation, or found a different, inferior way of making a living. The "company towns", regardless of how distasteful,
improved the lives of the workers compared with their next-best alternative.
The same argument holds with respect to employers more generally.
Option 1: They were criminals (and some, I am sure, were), in which case their abuse is a clear case of government failure.
Option 2: They never used violence to force employees to accept their terms. In that case, the poor "exploited" employees must have felt that they were better off working for those employers than with any other alternative available to them. In other words, the employers improved the lot of the employees (even while being vilified by them).
This is but a special example of my more general rule about money only being usable for good in a free society. In a free society, a person's private property is sacrosanct. All the world's billionaires working together cannot take a dime off him against his will. What money can do is tempt people to do things. If I own a little house in a free society, a rich man who desires it to enlarge is estate (or to build a road, or whatever) can never force me to sell. He can, however, make me an offer I will choose not to reject.
The movie Indecent Proposal nicely illustrates both the power of money and its limitations. John Gage, the wealthy man played by Robert Redford, had zero power to force the couple to accept his offer. Had they chosen to do so, it was because they felt it would improve their lives. Government, in this fable, would be the equivalent of a rapist who uses violence to have their way, regardless of whether it benefits the other side or not.
lubbockjoe wrote:There are degrees of influence. A mere suggestion would be at the lower end of the influence scale while economic coercion would be at the other end.
What is "economic coercion"? All a person with money can do is come to you and say - "I propose to make your life better by paying you money in exchange for X. If you agree, great. If not, I'll have to go way." Where is the coercion?
lubbockjoe wrote:How many voluntary exchanges can someone with no money make?
Every person owns their own body. They can (and routinely do) exchange their services for money. There is also nothing stopping good people from gifting their property to the poor. Charity always existed and will continue to exist, in much greater force, in a free society. Here is how I know. The reason democratic governments provide services to the poor (misguided and destructive as they are) is because there is wide-spread sentiment in the public that helping the poor is a worthwhile goal, right? But if we accept that there is a wide-spread sentiment in the public that helping the poor is a worthwhile goal, there is absolutely nothing in a free society to stop people from doing just that - helping the poor.
Again, not being forced to do X is not the same as being prohibited from doing X, just like not being prohibited from doing Y is not the same as being forced to do Y.
We have a beautiful historical example in the separate of church and state in the USA. Unlike their European counterparts, Americans have not, since independence, been forced to contribute funds towards religious institutions and organizations. By the logic that without government action there is no private action, American religious organizations should have dwindled to a pale shadow of their European counterparts. Societal starting point was similar, with most American immigration coming from Europe.
What actually happened was precisely the opposite - American religious institutions (whether you like it or not) are much stronger than European ones.
The very same would happen with charitable organizations. Remove the state, and the voluntary sector will take over.
Let me make a final statement about the role of money and commercial interests. While for-profit corporations are obviously a very effective mechanism for achieving goals, one which will, in all likelihood play a very important role in a future free society, they are by no means exclusive.
Libertarians are not pro-business. They are anti-government. Libertarians accept all forms of
voluntary human cooperation. Workers are welcome to establish mutual-aid societies, start mutually-owned corporations, contribute to charity, participate in consumer action, engage in education campaigns, etc, etc, etc.
The only thing they will not be able to do is use violence (either their own, or through government) to force others to accept their way.
Free men are not equal and equal men are not free.
Government is not the solution. Government is the problem.