Posts tagged Vulgar libertarianism

On Anarchy and Big Business

You write: The other problem I have with the Libertarian Free Market is this. I loathe Wal-Mart, Target, Best Buys, MacDonald’s and even Piggly Wiggly. The problem there is corporations result when the market is totally free. With corporations we enjoy… offshore outsourcing of manufacturing. . . . I guess I have trouble with the totally free market, not that I have a better solution. But I’m none too thrilled by the strip malls all looking the same and owned by nameless faceless corporations.

What makes you think that the success of big-box retailers like Wal-Mart, Target or Best Buy is the result of the free market? Certainly they’re prosperous in the market that we have, but as you know, the market that we have is not free.

In particular, big-box retailers like Wal-Mart, Target, and Best Buy benefit massively from — in fact, they probably depend on — government hand-outs for big, centralized corporations in the name of “development” and “economic growth.” For example, in order to build those giant big box stores, they need large, contiguous blocks of land near an interstate highway exit. They often get those large blocks of well-positioned land at artificially low prices because the city government uses eminent domain to seize it, either in the process of building the highway or else as an independent project for “development” purposes. In a freed market, they wouldn’t have that.

Big chains like Wal-Mart, Target, and Best Buy also need big systems of warehouses, cross-country trucking, etc., and for all of that, they need big interstate highways. Which happen to be built, maintained, and subsidized by the government. In a freed market, there would be no government-subsidized highway system, and they’d actually have to pay the full cost of their shipping and distribution networks.

They also typically depend on being able to get very low-cost goods exported from textile mills, plastic factories, etc. overseas, in places like Communist China, Indonesia, Malaysia, and so on. Those goods are often cheap because labor is extremely cheap. But labor is extremely cheap because labor markets in those countries are unfree, because those governments happen to be comfortable with extreme brutality in order to keep small-time farmers and industrial workers poor, subservient, and desperate for any way to get cash. In a freed market, workers overseas would be much better off, much less desperate for cash, much more free to leave abusive or exploitative bosses to find new livelihoods, and generally able to command much higher prices for their labor. As a result, Wal-Mart’s comparative advantage in importing from developing countries would make for much less of a comparative advantage in competing with smaller, local shops — because goods from developing countries would no larger be made artificially cheap by the intervention of violently anti-worker governments.

As Roderick Long has argued (http://www.cato-unbound.org/2008/11/10/roderick-long/corporations-versus-the-market-or-whip-conflation-now/): “In a free market, firms would be smaller and less hierarchical, more local and more numerous (and many would probably be employee-owned); prices would be lower and wages higher; and corporate power would be in shambles. Small wonder that big business, despite often paying lip service to free market ideals, tends to systematically oppose them in practice.”

You write: As an old punk I should be all gung-ho for anarchy but anarchy is what “governs” Iraq.

Oh, come on, really? Iraq is in a state of civil war, not a state of anarchy. Civil war is what you have when a strip of land has too many governments (or would-be governments) fighting with each other over which one gets to do the governing. Anarchy is what you have when the have no governments at all. Iraq, which is currently being contested by the armed forces of the most powerful government in the world, a nominally independent puppet government propped up by those occupying armed forces, fractious provincial governments (especially in Kurdistan), occasional incursions from Turkey and Iran, roving sectarian death squads closely associated with various armed factions like SCIRI, the Sadrist movement, various tribally-based Sunni warlord-gangsters, Al-Qaeda, etc., all instituting police-state measures wherever they have strong enough control to do so, and all of them fighting with each other over who will be able to come out on top as rulers of Iraq, or–failing that–how they will be able to carve up Iraq into fiefs under their military control. That’s not anarchy; it’s just a bunch of warring states trying to get their hands on parts of the same country. No surprise: the situation there was created by a war between feuding governments and a military occupation.

Anarchy means no governments and no rulers — a consensual society based on free association, without wars, taxes, occupations, government prohibitions, government police, government curfews, or any of the rest. Maybe that’s achievable in this world, and maybe it’s not, but possible or impossible, it’s important to keep in mind what it is we’re talking about. Anarchy means lawlessness, not disorder; and it certainly doesn’t mean having so many would-be law-makers in one place that they end up fighting over who gets to make the laws!