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PDF Editor FAQ

As a right libertarian, I understand how a capitalist system would work in the absence of government. What is the framework of the economic system for a left libertarian anarchist society?

The question actually begs a further question: does capitalism actually work in the absence of government? If it does, then a left-anarchist society may be completely indistinguishable from a right-anarchist one. If it does not, then it will be different, but to understand how we need to understand why capitalism may not work.The key feature of capitalism, from a left perspective, is the ability of capitalists to control access to productive resources well outside their personal ability to protect, resources they did not produce, do not directly use, and indeed may never have seen. They can do this, because the state pays the cost of protecting those resources against others.Here’s the key question: if you remove the government, and therefore the ability to socialize those costs, will capitalists be able to afford the cost of protecting those resources out of their profits, plus the taxes they would not longer have to pay?If you look at it like this, then I think the answer is “sometimes”. Most intellectual property is done for, that’s obvious, except things that can be agreed by contract. Patents are certainly out, and there’d be no protection for trade secrets except what you supply yourself. Absentee landlordism, likewise, is done anywhere where there is any kind of land or housing shortage, especially claims to unimproved or under-used land. Banking, similarly is going to become much less profitable if there are no limits on currency issuance. Small businesses generally will be fine, especially any enterprise where the owner is also making true investments or retail where you’re primarily transporting things to places where they will be needed.Industrial capitalism is where it gets a bit more interesting, and of course that’s where the difference between left and right liberal or anarchist visions generally comes to a crunch. There are certainly cases that won’t work - Enron buying power capacity merely in order to shut it down and create shortages, for example, is never going to work without a state to back them up. But buying and building machinery and plants and employing people may well continue to work. The basic bargain of capitalism, in which most people swap their control over the product of their labor for a predictable income is rational and would probably remain intact, although very likely with higher wages and lower profits.Based on this analysis you can envision a minimally left-anarchist world in which you would have a mixture of some basically capitalist institutions, in traditionally capital-intensive businesses, with worker control in others where investment consists primarily of labor in the business itself. You would have a high competitive financial system with much easier access to capital for everyone, and a somewhat different, more generally useful, set of technical innovations which would disseminate more rapidly. In many countries you would also have a very different profile of land usage, especially housing. This looks somewhat like what Stefan Cuevas called Carsonian Mutualism except its rather more capitalist since I don’t think Kevin Carson believes the wage system is sustainable on a purely voluntary basis where I think it probably is, sometimes, simply because most people are very risk averse.

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