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Review: The Public Choice Theory of Murray N. Rothbard, a Modern AnarchistAuthor(s): H. E. Frech IIISource:
Public Choice,
Vol. 14 (Spring, 1973), pp. 143-154Published by: SpringerStable URL:
http://www.jstor.org/stable/30022711
Accessed: 04/11/2009 01:41
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THE PUBLICCHOICETHEORY OF MURRAY N.ROTHBARD,AMODERN ANARCHIST*H.E.Frech ///
In recentyears,asmallbutgrowingradical ntellectual movement hasgainedadegreeofprominence.Themembersofthislooselydefinedgroupareverydissatisfied withthepowerofthemodernState.Consistingof conservativeswhohave becomedisillusionedwithconservativepoliticalfiguresand new Leftists whohave becomedisillusioned withgovernmentpower,themovement uses labels likeradicallibertarianism, narchism,andanarchocapitalism.Althoughnotall of thosein thissmallgroupareanarchists,heanarchistsare animportantnfluence.One of thekeyintellectualleadersofthemovementisMurrayN.Rothbard,who isoneof thefewU.S.-trainedanarchisteconomists. For severalyearsheeditedapublicationcalledLeftandRightwhich wasdesignedtopulllibertarianlementsofbothgroupstogether.UntilrecentlyhesharedtheeditorshipoftheLibertarianForum withKarlHess,aNewLeftanarchistwhooncewasaspeechwriterorBarryGoldwater.Rothbardacknowledgesanintellectual debt to the AustrianschoolandtohismentorLudwigVonMises,althoughhisanalysisdiffersinmanywaysfromthatofVon Mises.Rothbard'schallengingand unorthodoxprofessional writings spanawiderangeofpublicchoicetopics includingthestatelesssociety,criticismsofpublicchoicetheorists,thetheoryof theState,democracy,externalitiesandpublicgoods,monopoly,humanandpropertyrights,publicandprivatecoercion,andecono-mists'valuejudgments.Hisanalysesare notalwayscorrectbuttheyareoftenoriginalandinvariablytimulating.ThispaperprovidesacriticalreviewofProfessorRothbard's ittleknownpublicchoicetheories.
TheStatelessSociety
Indiscussingthenecessityofgovernment,Rothbard(1970a,Ch.1)beginswith anexcellentcritiqueof thestandardargumentsforthenecessityofgovernmento settleconflict.First,atypicalstatementwouldhold thatthe state isnecessaryo define andinitiallyallocatepropertyrights.Rothbardsuggeststheallocationofinitialpropertyrightsto thosewhofindandtransformnaturalresourcesbytheir labor.
UniversityofCalifornia,Los Angeles and the National Center for HealthServicesResearchandDevelopment,DHEW. Thanks are due to Paul B. Ginsburg, MichiganStateUniversity,formanyhelpfulcomments on earlier drafts. The views expressed here are notnecessarilythoseof eitheraffiliated institution.
143
 
144PUBLICCHOICEAsingle,ultimate arbiterofconflicts(e.g.,theU.S.SupremeCourt)isconsiderednon-essential.1Citizensof differentcountriesmaintainsuccessfulrelationswithouta final arbiter overthem.Inrelation to eachother,individualsofonecountryand individualsofanothercountryexistinanarchy.Thedangerof afree-market defense andpropertyrightenforcing agencyturningitsphysicalpowerto criminaluses,perhapscolludingwith afree-marketcourtoflawtomakefraudulentdecisions is considered. Heagreesthatsome suchorganizationswillbecome criminal.Rothbardisnotaromanticutopian,believingthat menwillsuddenlybecomefullofgoodnessina statelesssociety.Theanalysisisinteresting preciselybecausehedoesnot believe thatconflicts ofinterestwillevaporatewhentheStateisabolished.Hearguesthatina statelesssociety:...therewouldbe noregular,legalized,channelforcrimeandagression,nogovernmentapparatusthe control of whichprovides...forinvasion ofpersonandproperty...awould-becriminalpoliceorjudiciarywould finditverydifficult to takepower,since therewouldbenoorganizedStateapparatusto seize. ..Tocreatesuchaninstrumentalityde novoisverydifficult. ..historically,it tookStaterulerscenturiestoestablishafunctioningStateapparatus(1970a,p.5).The authorthenarguesthat the checks and balancesresultingfrom the existenceoffreelycompetitivedefenseagenciesandjudiciariesprovidestrongerprotectionthanthoseof theAmericangovernmentalsystem,where,afterall,the institutions areagenciesofthecentralgovernment.Rothbard's modeloffree-marketdefense and conflict settlement is interest-ing.IfSmithbelievesthathe hasbeeninjuredbyJones,he files suitorpresseschargeswithinhisownvoluntarydefenseagency.Smith'sdefenseagencyholds atrial. IfJonesdisputestheverdict,there will be anothertrialeitherinacompetitiveAppealsCourtorinthedefendant's(Jones')defenseagency'scourt.TheAppealsCourt decisionorthatofJones'defenseagency,ifitagreeswithSmith'sagency,may"thenbetakenbythesociety(italicsadded)asbinding."For asRothbardnotes:Everylegal systemneeds some sortof asocial-agreeduponcutoffpoint,apointatwhichjudicial procedure stopsandpunishmentagainsttheconvicted criminalbegins.(1970a,p.5)Further,ina footnoteheasserts that:
1However,asweshallsee, Rothbard'sown modelofavoluntarysocietycontainssucha
final arbiter.
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