Ludwig von Mises, for all his
genius, failed to take the concept of free markets to its logical conclusion,
to include a competitive judicial system and security.
Here are excerpts from his ‘Omnipotent
government,’ followed by my snotty comments in bold.
The state can be and has often
been in the course of history the main source of mischief and disaster.
— So how can the alternative of anarchy be not worth trying?
Anarchism believes that a
social order could be established in which all men would recognize the
advantages to be derived from cooperation and be prepared to do voluntarily
everything which the maintenance of society requires and to renounce
voluntarily all actions detrimental to society. But the anarchists overlook two
facts. There are people whose mental abilities are so limited that they cannot
grasp the full benefits that society brings to them. And there are people whose
flesh is so weak that they cannot resist the temptation of striving for selfish
disadvantage through actions detrimental to society.
— The fact that such types of people could be mere exceptions makes
general lawfulness possible. Or will entrepreneurs in an anarchist society
somehow be blind to the opportunities that lie in security provision?
The essential teaching of
liberalism is that social cooperation and the division of labor can be achieved
only in a system of private ownership of the means of production…
— If anarchism is so naïve a notion on account of possible deviants,
isn’t a free-market philosophy just as naïve on account of business failures? In
fact, neither are naïve because they recognize that people respond to such
deviations or failures, thus making for accountability within the system.
Liberalism assigns to the
state the task of protecting the lives, health, freedom, and property of its
subjects against violent or fraudulent aggression.
— In spite of it being THE main aggressor.
Outside of the market stands
the social apparatus of compulsion and coercion, and its steersmen, the
government. To state and government the duty is assigned of maintaining peace
both at home and abroad.
— The provision of security is not necessarily “outside of the market.”
If people can somehow assign such a
duty to a monopoly, why could it not be “assigned” among more competitive
forces? Are monopolies more responsive somehow to the security needs of people
than competitive entities, as they are not in other sectors? Or are they more
responsive than competitive entities in general? Why not give to government control of
the market? Oh that’s right, the economic calculation problem, which for no
reason should not apply to security.
It is one of the fundamental
insights of liberal thought that government is based on opinion, and that
therefore in the long run it cannot subsist if the men who form it and the
methods they apply are not accepted by the majority of those ruled. If the
conduct of political affairs does not suit them, the citizens will finally
succeed in overthrowing the government by violent action and in replacing the
rulers by men deemed more competent.
— Why is this electoral system not feasible with overall trade but
feasible with maintaining peace and order?
The population of every
territory is free to determine to which state it wishes to belong, or whether
it prefers to establish a state of its own.
— What good reason is there that matters of security need be
geographically dependent, unlike ‘public utilities’ or chairs? As it is, the “population”
Mises refers to could only act collectively or by majority — rendering elections adverse to
individual choice — and with violent revolution.
Whoever wants lastingly to
establish good government must start by trying to persuade his fellow citizens
and offering them sound ideologies. He is only demonstrating his own incapacity
when he resorts to violence, coercion, and compulsion.
— Like in demanding taxes (Blank out!).
The establishment of a
supernational world government is an old idea of pacifists.
Such a world government is not
needed for the maintenance of peace, however, if democracy and an unhampered
market economy prevail everywhere.
— If a world government is a bad idea on account of “an unhampered
market economy prevail[ing] everywhere,” why the need for national governments
still, since order is still possible without a singular maintainer of peace? It
might be argued that governments would be the one coming up with ‘laws,’ but
this could not presume justness of such laws.
‘Law’ is an after-the-fact concept established among peoples by their
study of what works; just law could not be something written down by appointees for the sake of universal application; otherwise,
world government would be a good idea.
So if we were to choose between competition and monopoly to maintain
order, why would we go with the latter, i.e. government?
But will all men rightly
understand their own interests? What if they do not?
— If they don’t, no government alternative could be an improvement anyway.