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Libertarian anarchism responses 
to ten objections by Roderick T 

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long. 
I want to talk about some of the

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main objections that have been 
given to libertarian anarchism 

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and my attempts to answer them. 
But before I start giving 

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objections and trying to answer 
them, there was no point in 

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trying to answer objections to 
have you unless you have been 

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given some positive reason to 
hold the view in the first 

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place. 
So I just want to say briefly 

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what? 
I think the positive case is for

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it before. 
Going on to defend it against 

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objections. 
The case for libertarian, 

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anarchism problems with forced 
Monopoly. 

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Think about it this way. 
What's wrong with a shoe 

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Monopoly? 
Suppose that I And My Gang are 

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the only ones who are legally 
allowed to manufacture and sell 

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shoes. 
My gang and anyone else I 

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authorized, but no one else. 
What's wrong with it? 

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Well, first of all, from a moral
point of view, the question is, 

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why us, what is so special about
us now, in this case? 

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Because I've chosen me, it is 
more plausible that I ought to 

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have that kind of Monopoly. 
So maybe I should pick a 

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different example, but still, 
you might wonder where do I in 

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my gang? 
Get off. 

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Clint claiming this right to 
make and sell something that no 

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one else has the right to make 
and sell to provide a good or 

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service. 
No one else has the right to 

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provide at least as far as you 
know, I'm just another mortal. 

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Another human like unto 
yourselves more or less. 

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So from a moral standpoint. 
I have no more right to do it 

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than anyone else. 
Then, of course, from a 

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pragmatic, consequentialist 
standpoint. 

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Well, first of all, what is the 
likely result of my in my gang 

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having a monopoly on shoes? 
Well, first of all, there are 

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incentive problems, if I'm the 
only person who has the right to

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make and sell shoes, you're 
probably not going to get the 

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shoes from me. 
Very cheaply. 

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I can charge as much as I want. 
As long as I don't charge too 

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much that you just can't afford 
them at all, or you decide 

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you're happier. 
Just not having the shoes. 

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But as long as you're willing 
and able, I'll charge the 

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highest price that I can get out
of you because you've got no 

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competition. 
No. 

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Where else to go. 
You also probably shouldn't 

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expect the shoes to be a 
particularly high quality 

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because after all as long as 
they're barely serviceable and 

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you still prefer them to going 
Barefoot, then you have to Them 

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for me. 
In addition to the likelihood 

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that the shoes are going to be 
expensive and not very good. 

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There's also the fact that my 
ability to be the only person 

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who makes and sells shoes gives 
me a certain leverage over. 

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You suppose that I don't like, 
you suppose you've offended me 

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in some way. 
Well, maybe you just don't get 

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used for a while. 
So there's also abuse of power 

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issues, but it's not just the 
incentive problem because after 

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all suppose that I'm a perfect 
saint. 

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And I will make the best use, I 
possibly can. 

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And I'll charge the lowest 
price. 

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I can possibly charge and I 
won't abuse my power at all. 

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Suppose. 
I'm utterly trustworthy. 

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I'm a prince among men not in 
Machiavelli, since there was 

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still a problem which is how do 
I know exactly that I'm doing 

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the best job I can with these 
shoes after all, there's no 

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competition. 
I guess I could pull people to 

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try and find out what kind of 
shoes they seem to want, but 

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there are lots It's of different
ways. 

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I could make shoes. 
Some of them are more expensive 

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ways of making men and some are 
less expensive. 

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How do I know given that there's
no market? 

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And there's really not much I 
can do in the way of profit and 

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loss accounting. 
I just have to make guesses. 

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So even if I'm doing my best the
quality I make the quantity I 

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make may not be best suited to 
satisfy people's preferences and

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I have a hard time finding these
things out. 

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Government is a forced Monopoly.
So those are all the reasons not

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to have a monopoly on the making
and selling of shoes. 

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Now Prime Aphasia. 
At least it seems as though 

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those are all good reasons for 
anyone. 

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Not to have a monopoly in the 
provision of Services of 

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adjudicating disputes and 
protecting rights and all the 

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other things that are involved 
in what you might broadly call 

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the enterprise of law. 
First of all, there's a moral. 

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Question, why does one gang of 
people get the right to be the 

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only ones in a given territory 
who can offer certain kinds of 

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legal services or enforce 
certain kinds of things. 

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And then there are these 
economic questions. 

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What are the incentives going to
be? 

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Once again? 
It's a monopoly. 

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It seems likely that with a 
captive customer base. 

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They're going to charge higher 
prices than they otherwise would

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and offer lower quality. 
There might even be the 

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occasional abuse abuse of power.
And then, even if you managed to

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avoid all those problems and you
get all the saintly types and to

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government, they're still a 
problem of how do they know that

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the particular way? 
They're providing Legal 

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Services? 
The particular mix of Legal 

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Services. 
They're offering the particular 

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ways. 
They do. 

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It are really the best ones. 
They just have to try and figure

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out what will work since there's
no competition. 

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They don't have much way of 
knowing whether what they're 

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doing is the most successful 
thing they could be doing. 

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So, the purpose of those 
considerations is to put the 

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burden of proof on the opponent.
So this is the point when the 

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opponent of competition and 
legal services, has to raise 

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some objections. 
Ten objections to the 

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libertarian. 
Anarchism. 

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Number one, government is not in
the chaos of Monopoly. 

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Now one objection that sometimes
raised isn't so much an 

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objection to anarchism as an 
objection to the moral argument.

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For anarchism. 
We'll look, it's not really a 

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coercive Monopoly. 
It's not as though people 

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haven't consented to this 
because there's a certain sense 

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in which people have consented 
to the existing system by Within

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the borders of a particular 
territory by accepting the 

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benefits of government offers 
and so forth. 

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They have an effect consented 
just as if you were, I walk into

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a restaurant, sit down and say 
y'all have a steak. 

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You don't have to explicitly 
mention that you're agreeing to 

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pay for it. 
It's just sort of understood by 

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sitting down in the restaurant 
and asking for the steak, you 

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are agreeing to pay for it. 
Likewise the argument goes if 

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you sit down In the territory of
this given State and you accept 

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benefits of police protection or
something. 

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Then you've input plus Italy 
agreed to abide by its 

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requirements. 
Notice that even if this 

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argument works, it doesn't 
settle the pragmatic question of

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whether this is the best working
system. 

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But I think there was something 
dubious about this argument. 

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It's certainly true. 
That if I go onto someone else's

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property, then it seems like 
there's an expectation that, as 

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long as I'm on their property, I
have to do, as they say, I have 

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to follow their rules. 
If I don't want to follow their 

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rules, then I have to leave. 
So I invite you over to my house

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and when you come in, I say, you
have to wear the funny hat and 

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you say what's this? 
And I say, well, that's the way 

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it works in my house. 
Everyone has to wear. 

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The funny hat. 
Those are the rules. 

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Well, you can't say I won't wear
this hat, but I'm saying, 

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anyways, these are my rules. 
They may be dumb rules, but I 

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can do it now, suppose that 
you're at home having dinner and

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I'm your next door neighbor, and
I come and knock on your door. 

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You open the door and I come 
say, you have to wear the funny 

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hat. 
And you say, why is this and I 

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say, well, you moved in next 
door to me. 

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Didn't you by doing that? 
You sort of agreed? 

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And you say, well, wait a 
second. 

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When did I agree? 
Do this. 

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I think that the person who 
makes this argument is already 

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assuming that the government has
some legitimate jurisdiction 

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over this territory. 
And then they say, well, now 

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anyone who was in the territory,
is there for agreeing to the 

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prevailing rules, but there are 
so many the very things they're 

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trying to prove namely that 
jurisdiction over the territory 

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is legitimate. 
If it's not, then the government

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is just one more group of 
people. 

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In this broad General 
geographical territory, but I've

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got my property and exactly what
their arrangements are. 

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I don't know. 
But here I am in my property and

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they don't own it. 
At least they haven't given me 

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any argument that they do. 
And so the fact that I'm living 

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in this country, means I'm 
living in a certain geographical

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region that they have certain 
pretensions over. 

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But the question is, whether 
those pretensions are 

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legitimate, you can't assume 
Zoom it. 

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As I mean sir. 
Proving it. 

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Another thing is one of the 
problems with these implicit 

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social contract arguments is 
that it's not clear, what the 

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contract is, in the case of 
ordering food in a restaurant. 

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Everyone pretty much knows what 
the contract is so you could run

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an implicit consent argument 
there, but no one would suggest 

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that you could buy a house in 
the same way. 

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There are all rules and things 
like that when it's something 

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complicated. 
No one says you just sort of 

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agreed by nodding your head at 
some point or something. 

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You have to find out what it is.
That's exactly in the contract. 

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What are you agreeing to? 
It's not clear. 

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If no one knows what exactly the
details of the contract. 

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Are. 
It's not that persuasive. 

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Okay. 
Well, most of the arguments I'm 

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going to talk about are 
pragmatic or a mixture of moral 

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and pragmatic. 
Objection. 

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Number to Thomas. 
Hobbes says government is 

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necessary for cooperation. 
Probably the most famous 

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argument against Anarchy is 
Hobbs Hobbs. 

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His argument is well, look, 
human cooperation. 

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Social cooperation requires a 
structure of law in the 

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background. 
The reason we can trust each 

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other to cooperate is because we
know that there are legal forces

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that will punish us. 
If we violate each other's 

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rights. 
I know they'll punish me if I 

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violate your rights, but Also 
punish you if you violate my 

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rights and so I can trust you 
because I don't have to rely on 

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your personal character. 
I just have to rely on the fact 

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that you'll be intimidated by 
the law. 

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So, social cooperation requires 
This legal framework backed up 

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by force of the state. 
Well, Hobbs is assuming several 

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things at once here, first. 
He's assuming that there can't 

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be any social cooperation with 
Outlaw second. 

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He's assuming that there can't 
be any law, unless it's enforced

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by physical force, and third, 
he's assuming, you can't have 

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law, enforced by physical Force,
unless it's done by a monopoly 

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state, but all of those 
assumptions are false. 

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It's certainly true that 
cooperation can and does emerge.

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Maybe not as effectively as it 
would with law, but without law.

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Robert elections book order 
without law, where he talks 

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about how neighbors managed to 
resolve disputes. 

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He offers all these examples 
about what happens if one 

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Farmers cow wanders onto another
Farmers territory and they solve

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it through some mutual customary
agreements and so forth. 

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So there's no legal framework 
for resolving it. 

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Maybe that's not enough for a 
complex economy, but it 

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certainly shows that you can't 
have some kind of cooperation, 

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without an actual legal 
framework. 

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Second. 
You can have a legal framework. 

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I'm work. 
That isn't backed up by force. 

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An example would be the law 
Merchant in the late Middle 

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Ages. 
A system of commercial law that 

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was backed up by threats of 
boycott. 

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Boycott is an act of force, but 
still, you've got Merchants 

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making all these contracts. 
And if you don't abide by the 

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contract, then the courts just 
publicizes to everyone. 

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This person didn't abide by the 
contract, take that into 

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account. 
If you're going to make another 

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contract with him. 
And third, you can have formal 

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legal systems that do not use 
force that are not monopolistic.

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Since Hobbs doesn't even 
consider that possibility. 

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He doesn't really give any 
argument against it but you can 

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certainly see examples in 
history. 

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The history of medieval Iceland,
for example where there was no 

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Center of enforcement. 
Although there was something 

231
00:12:47,400 --> 00:12:49,400
that you might perhaps call a 
government. 

232
00:12:49,400 --> 00:12:51,800
It had no executive arm at all. 
It had no police. 

233
00:12:51,800 --> 00:12:53,200
No soldiers. 
No nothing. 

234
00:12:53,700 --> 00:12:55,600
It had sort of a competitive 
Court. 

235
00:12:55,900 --> 00:13:01,600
Mmm, but then enforcement was 
just up to whoever and there 

236
00:13:01,600 --> 00:13:04,000
were systems that evolved for 
taking care of that. 

237
00:13:06,100 --> 00:13:10,200
Objection number, three lakh, 
three inconveniences of Anarchy.

238
00:13:10,400 --> 00:13:13,000
Okay. 
Well more interesting arguments 

239
00:13:13,000 --> 00:13:16,400
come from Locke Locke argues 
that anarchy involves three 

240
00:13:16,400 --> 00:13:20,300
things called inconveniences. 
And inconvenience has somewhat 

241
00:13:20,600 --> 00:13:24,500
more weighty of a sound in the 
17th century English than it 

242
00:13:24,500 --> 00:13:27,700
does in Modern English, but 
still his point in calling it 

243
00:13:27,700 --> 00:13:32,600
inconveniences, which still is a
bit weaker was the that lock 

244
00:13:32,600 --> 00:13:35,600
thought that social cooperation 
could exist under some Anarchy. 

245
00:13:35,900 --> 00:13:38,200
He was more optimistic than hops
was. 

246
00:13:38,700 --> 00:13:42,400
And thought on the basis of 
moral sympathies on one hand and

247
00:13:42,400 --> 00:13:45,800
self-interest on the other 
cooperation could emerge. 

248
00:13:46,100 --> 00:13:48,500
He thought there were three 
problems? 

249
00:13:50,100 --> 00:13:52,900
One problem. 
He said was that there wouldn't 

250
00:13:52,900 --> 00:13:56,300
be a general body of law, that 
was generally known and agreed 

251
00:13:56,300 --> 00:13:59,300
upon in understood. 
People could grasp certain basic

252
00:13:59,300 --> 00:14:02,200
principles of the law of nature,
but their applications in 

253
00:14:02,200 --> 00:14:05,500
precise detail were always going
to be controversial. 

254
00:14:06,400 --> 00:14:09,400
Even Libertarians, don't agree. 
They can agree on General 

255
00:14:09,400 --> 00:14:12,100
things, but we're always arguing
with each other about various 

256
00:14:12,100 --> 00:14:13,400
points of fine. 
Detail. 

257
00:14:13,600 --> 00:14:16,100
So, even in the Society of 
peaceful Cooperative 

258
00:14:16,100 --> 00:14:19,700
Libertarians, there are going to
be disagreements about detail. 

259
00:14:20,000 --> 00:14:23,300
And so, unless there's some 
general body of law that 

260
00:14:23,300 --> 00:14:26,500
everyone knows about so that 
they can know what they can 

261
00:14:26,500 --> 00:14:29,900
count on being able to do and 
what not. 

262
00:14:30,200 --> 00:14:32,500
It's not going to work. 
So that was locks. 

263
00:14:32,500 --> 00:14:35,100
First argument. 
There has to be a generally 

264
00:14:35,100 --> 00:14:39,000
known Universal body of law that
applies to everyone that 

265
00:14:39,000 --> 00:14:41,000
everyone knows about ahead of 
time. 

266
00:14:42,700 --> 00:14:45,400
Second, there's a power of 
enforcement problem. 

267
00:14:45,700 --> 00:14:48,100
He thought that without a 
government, you don't have 

268
00:14:48,100 --> 00:14:50,500
sufficiently unified power to 
enforce. 

269
00:14:50,800 --> 00:14:54,200
You just have individuals 
forcing things on their own, and

270
00:14:54,200 --> 00:14:56,700
they're just too weak. 
They're not organized enough. 

271
00:14:56,700 --> 00:14:59,500
They could be overrun by a gang 
of Bandits or something. 

272
00:15:01,300 --> 00:15:05,200
Third lock said, the problem is 
that people can't be trusted to 

273
00:15:05,200 --> 00:15:08,600
be judges in their own case. 
If two people have a 

274
00:15:08,600 --> 00:15:12,200
disagreement and one of them 
says, well, I know what the law 

275
00:15:12,200 --> 00:15:15,600
of nature is and I'm going to 
enforce it on you. 

276
00:15:16,000 --> 00:15:19,200
Well people tend to be biased 
and they're going to find most 

277
00:15:19,200 --> 00:15:22,200
plausible deer per 
interpretation of the law of 

278
00:15:22,200 --> 00:15:24,400
nature that favors their own 
case. 

279
00:15:24,700 --> 00:15:27,200
So we thought that you can't 
trust people to be judges in 

280
00:15:27,200 --> 00:15:29,200
their own case. 
Therefore, they should be 

281
00:15:29,200 --> 00:15:32,900
morally required to submit. 
Disputes to an Arbiter. 

282
00:15:33,600 --> 00:15:36,500
Maybe in cases of emergency, 
they can still defend themselves

283
00:15:36,500 --> 00:15:39,500
on the spot, but for other 
cases, it's not a matter of 

284
00:15:39,500 --> 00:15:42,700
immediate self-defense. 
They need to delegate this to an

285
00:15:42,700 --> 00:15:45,700
Arbiter, a third party and 
that's the state. 

286
00:15:47,300 --> 00:15:50,300
So Locke thinks that these are 
three problems, you have under 

287
00:15:50,300 --> 00:15:53,100
Anarchy, and you wouldn't have 
them under government or at 

288
00:15:53,100 --> 00:15:55,300
least the right kind of 
government, but I think it's 

289
00:15:55,300 --> 00:15:57,200
actually exactly the other way 
around. 

290
00:15:57,300 --> 00:16:00,700
I think that anarchy can solve 
all three of these problems and 

291
00:16:00,700 --> 00:16:03,800
that the state by its very 
nature, cannot possibly solve 

292
00:16:03,800 --> 00:16:07,900
them. 
So let's first take the case of 

293
00:16:07,900 --> 00:16:11,500
universality or having a 
universally known body of law 

294
00:16:11,500 --> 00:16:14,200
that people can know ahead of 
time and count on. 

295
00:16:14,600 --> 00:16:18,000
Now, can that emerge in a non 
State system? 

296
00:16:18,300 --> 00:16:21,600
Well, in fact, it did emerge in 
the law Merchant precisely 

297
00:16:21,600 --> 00:16:24,100
because the states were not 
providing it. 

298
00:16:24,700 --> 00:16:28,200
One of the things that helped to
bring about the emergence of the

299
00:16:28,200 --> 00:16:32,300
law, Merchant is the individual 
states and Europe each had 

300
00:16:32,300 --> 00:16:34,500
different sets of laws. 
Governing merchants. 

301
00:16:36,500 --> 00:16:39,200
They were all different and the 
court in France. 

302
00:16:39,200 --> 00:16:42,400
Wouldn't uphold a contract made 
in England under the laws of 

303
00:16:42,400 --> 00:16:45,500
England and vice versa. 
And so the merchants ability to 

304
00:16:45,500 --> 00:16:49,200
engage in international trade 
was hampered by the fact that 

305
00:16:49,200 --> 00:16:52,600
there wasn't any uniform system 
of commercial law for all of 

306
00:16:52,600 --> 00:16:54,700
Europe. 
So the merchants got together 

307
00:16:54,700 --> 00:16:57,400
and said, we'll just make some 
of our own. 

308
00:16:58,200 --> 00:17:01,000
The courts are coming up with 
these crazy rules and they're 

309
00:17:01,000 --> 00:17:03,800
all different and they won't 
respect each other's decisions. 

310
00:17:03,800 --> 00:17:06,200
So we'll just ignore them and 
we'll set up our own system. 

311
00:17:07,099 --> 00:17:10,500
So this is a case in which 
uniformity and predictability 

312
00:17:10,500 --> 00:17:14,400
were produced by the market and 
not by the state, and you can 

313
00:17:14,400 --> 00:17:18,900
see why that's not surprising. 
It's in the interest of those 

314
00:17:18,900 --> 00:17:22,200
who are providing a private 
system, to make it uniform and 

315
00:17:22,200 --> 00:17:25,599
predictable, if that's what the 
customers need. 

316
00:17:27,400 --> 00:17:30,800
It's for the same reason that 
you don't find any triangular 

317
00:17:30,800 --> 00:17:32,900
ATM cards. 
As far as I know. 

318
00:17:32,900 --> 00:17:36,200
There's no law saying that you 
can't have a triangular ATM 

319
00:17:36,200 --> 00:17:38,200
card. 
But if anyone tried to Market 

320
00:17:38,200 --> 00:17:41,300
them, they just wouldn't be very
popular because they wouldn't 

321
00:17:41,300 --> 00:17:45,300
fit into the existing machines. 
When what people need is 

322
00:17:45,300 --> 00:17:48,200
diversity, when what people need
is different systems for 

323
00:17:48,200 --> 00:17:51,200
different people. 
The market provides that but 

324
00:17:51,200 --> 00:17:53,400
there are some things where 
uniformity is better. 

325
00:17:53,600 --> 00:17:56,400
Your ATM card is more valuable 
to you. 

326
00:17:56,700 --> 00:18:02,200
If everyone else is using the 
same kind as well or a kind 

327
00:18:02,200 --> 00:18:05,900
compatible with it. 
So you can use the machines 

328
00:18:05,900 --> 00:18:09,100
wherever you go on there for the
merchants if they want to make a

329
00:18:09,108 --> 00:18:11,900
profit, they're going to provide
uniformity. 

330
00:18:12,200 --> 00:18:16,100
So the market has an incentive. 
To provide uniformity in a way 

331
00:18:16,100 --> 00:18:18,300
that government doesn't 
necessarily. 

332
00:18:20,400 --> 00:18:23,200
On the question of having 
sufficient power for organizing 

333
00:18:23,200 --> 00:18:25,000
for defense. 
Well, there's no reason you 

334
00:18:25,000 --> 00:18:28,000
can't have organization under 
Anarchy in Turkey, doesn't mean 

335
00:18:28,000 --> 00:18:30,100
that each person makes their own
shoes. 

336
00:18:30,100 --> 00:18:33,100
The alternative to government, 
providing all the shoes is not 

337
00:18:33,100 --> 00:18:34,900
that each person makes their own
shoes. 

338
00:18:35,100 --> 00:18:37,700
So likewise the alternative, the
government providing all the 

339
00:18:37,700 --> 00:18:41,100
legal services is not that each 
person has to be their own 

340
00:18:41,100 --> 00:18:43,700
independent policeman. 
There's no reason that they 

341
00:18:43,700 --> 00:18:47,100
can't organize in various ways. 
In fact, if you're worried about

342
00:18:47,100 --> 00:18:50,000
not having sufficient Force to 
resist an aggressor. 

343
00:18:50,300 --> 00:18:52,800
Well, I'm an awfully government 
is a much more dangerous 

344
00:18:52,800 --> 00:18:57,400
aggressor than just some gang of
Bandits or other because it's 

345
00:18:57,400 --> 00:19:02,100
unified all this power in just 
one point in the whole society. 

346
00:19:03,700 --> 00:19:07,000
But I think most interestingly 
the argument about being a judge

347
00:19:07,000 --> 00:19:09,700
in your own case, really 
boomerangs against Locke's 

348
00:19:09,700 --> 00:19:12,400
argument here. 
Because first of all, it's not a

349
00:19:12,400 --> 00:19:16,100
good argument for a monopoly 
because it's a fallacy to argue 

350
00:19:16,100 --> 00:19:19,800
from everyone should submit 
their disputes to a third party.

351
00:19:20,200 --> 00:19:23,300
Two, there should be a third 
party that everyone submits 

352
00:19:23,300 --> 00:19:27,400
their disputes to that's like 
arguing from Everyone likes at 

353
00:19:27,400 --> 00:19:31,600
least one TV show to. 
There's at least one TV show 

354
00:19:31,600 --> 00:19:33,800
that Everyone likes. 
It just doesn't follow. 

355
00:19:34,100 --> 00:19:37,000
You can have everyone submitting
their disputes to third parties 

356
00:19:37,200 --> 00:19:41,600
without there being one, third 
party that everyone submits 

357
00:19:41,600 --> 00:19:43,600
their disputes to. 
So, suppose. 

358
00:19:43,600 --> 00:19:49,200
You've got three people on an 
island, A and B can submit their

359
00:19:49,200 --> 00:19:54,300
disputes to see And ANC can 
submit their disputes to B, and 

360
00:19:54,300 --> 00:19:56,900
B and C can submit their 
disputes to a. 

361
00:19:56,900 --> 00:20:00,300
So, you don't need a monopoly in
order to embody this principle 

362
00:20:00,300 --> 00:20:04,900
that people should submit their 
disputes to a third party, but 

363
00:20:04,900 --> 00:20:07,800
moreover, not only do you not 
need a government but a 

364
00:20:07,800 --> 00:20:11,300
government is precisely what? 
Doesn't satisfy that principle 

365
00:20:11,300 --> 00:20:15,700
because if you have a dispute 
with the government, the 

366
00:20:15,700 --> 00:20:18,100
government doesn't submit that 
dispute to a third party. 

367
00:20:18,100 --> 00:20:20,700
If you have a dispute with the 
Permanent. 

368
00:20:20,700 --> 00:20:23,000
It'll be settled in a government
court. 

369
00:20:23,100 --> 00:20:26,700
If you're lucky, if you're 
unlucky, if you live under one 

370
00:20:26,700 --> 00:20:29,600
of the more Rough and Ready, 
governments, you won't even get 

371
00:20:29,600 --> 00:20:31,100
as far as court. 
Now. 

372
00:20:31,300 --> 00:20:33,800
Of course, it's better. 
If the government is itself, 

373
00:20:33,800 --> 00:20:36,300
divided has checks and balances 
and so forth. 

374
00:20:36,500 --> 00:20:39,300
It's a little bit better. 
That's closer to their being 

375
00:20:39,300 --> 00:20:41,500
third parties. 
But still they are all part of 

376
00:20:41,500 --> 00:20:44,400
the same system. 
The judges are paid by tax money

377
00:20:44,400 --> 00:20:47,600
and so forth. 
So it's not as though you can't 

378
00:20:47,600 --> 00:20:50,700
have better and worse. 
Approximations to the Principal 

379
00:20:50,700 --> 00:20:53,000
among different kinds of 
governments still. 

380
00:20:53,100 --> 00:20:56,900
As long as it's a monopoly 
system by its nature. 

381
00:20:57,400 --> 00:21:03,100
It's in a certain sense Lawless 
it never ultimately submits its 

382
00:21:03,100 --> 00:21:08,700
disputes to a third party 
objection, number four by Ian. 

383
00:21:08,700 --> 00:21:13,700
Rand private protection agencies
will battle probably the most 

384
00:21:13,700 --> 00:21:16,200
popular argument against 
libertarian. 

385
00:21:16,200 --> 00:21:20,000
Anarchy is well what happens if 
and this is on Ranch? 

386
00:21:20,200 --> 00:21:23,300
Famous argument. 
I think you violated my rights 

387
00:21:23,300 --> 00:21:26,400
and you think you haven't? 
So I call up my protection 

388
00:21:26,400 --> 00:21:29,300
agency and you call up your 
protection agency. 

389
00:21:30,000 --> 00:21:33,600
Why won't they just go to battle
what guarantees that they won't 

390
00:21:33,600 --> 00:21:35,900
battle to which? 
Of course, the answer is well, 

391
00:21:36,000 --> 00:21:39,700
nothing guarantees. 
They won't do battle human 

392
00:21:39,700 --> 00:21:42,100
beings have free. 
Will they can do all kinds of 

393
00:21:42,100 --> 00:21:44,500
crazy things. 
They might go to battle, 

394
00:21:44,700 --> 00:21:47,300
likewise George Bush, might 
decide to push the nuclear 

395
00:21:47,300 --> 00:21:49,500
button tomorrow. 
They might do all sorts of 

396
00:21:49,500 --> 00:21:54,200
things. 
The question is what's likely 

397
00:21:55,100 --> 00:21:58,800
switches likelier to settle its 
dispute through violence a 

398
00:21:58,800 --> 00:22:01,800
government or a private 
Protection Agency. 

399
00:22:02,100 --> 00:22:04,900
Well, the difference is that 
private protection agencies have

400
00:22:04,900 --> 00:22:08,400
to bear the cost of their own 
decisions to go to war, going to

401
00:22:08,400 --> 00:22:11,000
war is expensive. 
If you have a choice between 

402
00:22:11,000 --> 00:22:13,900
two, protection agencies and one
solves its disputes through 

403
00:22:13,900 --> 00:22:17,300
violence, most of the time and 
the other solves its disputes 

404
00:22:17,500 --> 00:22:22,600
through arbitration, most of the
time now, You might think I want

405
00:22:22,600 --> 00:22:25,200
the one that solves its disputes
through violence. 

406
00:22:25,200 --> 00:22:28,700
They sound really cool. 
But then you look at your 

407
00:22:28,700 --> 00:22:30,600
monthly premiums and you think 
well. 

408
00:22:31,800 --> 00:22:34,500
How committed are you to this 
Viking mentality? 

409
00:22:34,500 --> 00:22:36,600
Now? 
You might be so committed to the

410
00:22:36,600 --> 00:22:38,700
Viking mentality. 
That you're willing to pay for 

411
00:22:38,700 --> 00:22:40,800
it. 
But still it's more expensive. 

412
00:22:40,800 --> 00:22:44,200
A lot of consumers are going to 
say, I want to go to the one 

413
00:22:44,200 --> 00:22:47,400
that doesn't charge all this 
extra amount for the violence. 

414
00:22:47,600 --> 00:22:50,300
Whereas government's, first of 
all, they've got captive 

415
00:22:50,300 --> 00:22:52,100
customers. 
They can't do elsewhere. 

416
00:22:52,300 --> 00:22:55,100
But since they're taxing, the 
customers anyways, and so the 

417
00:22:55,100 --> 00:22:58,600
customers don't have the option 
to switch to a different agency 

418
00:22:59,100 --> 00:23:03,500
and So governments can 
externalize the cost of, they're

419
00:23:03,500 --> 00:23:06,200
going to warm much more 
effectively than private 

420
00:23:06,200 --> 00:23:11,000
agencies can. 
And just a quick side note, 

421
00:23:11,300 --> 00:23:14,000
isn't it funny? 
They're so terrified of like, 

422
00:23:14,000 --> 00:23:17,800
neighbor a thinking you stole my
TV and then the other neighbor 

423
00:23:17,800 --> 00:23:19,900
saying, no, we didn't and 
violence. 

424
00:23:19,900 --> 00:23:23,100
Resulting. 
It's like, um, has there ever 

425
00:23:23,300 --> 00:23:27,500
been an example of government's 
going to war? 

426
00:23:27,900 --> 00:23:30,000
Like, you're really think 
neighbors are going to start 

427
00:23:30,000 --> 00:23:32,000
going to war. 
Let's see. 

428
00:23:32,000 --> 00:23:34,500
If this criticism also applies 
to your system. 

429
00:23:34,800 --> 00:23:39,500
Is there any historical examples
of governments using It's may be

430
00:23:39,500 --> 00:23:43,300
destroying property, maybe even 
killing innocent people. 

431
00:23:43,700 --> 00:23:46,600
I mean, you got a couple world 
wars, a couple genocides by 

432
00:23:46,600 --> 00:23:49,600
dictators. 
You got carpet bombings. 

433
00:23:49,600 --> 00:23:53,600
You got Mass arrests for 
victimless crimes. 

434
00:23:53,600 --> 00:23:57,500
You got stealing four trillion 
dollars annually, but at least 

435
00:23:57,500 --> 00:24:00,100
there's no disputes because 
under Anarchy. 

436
00:24:00,100 --> 00:24:05,300
There might be disputes in which
bad things happen, huh? 

437
00:24:06,300 --> 00:24:08,400
Objection. 
Number 5, Robert Ben. 

438
00:24:08,400 --> 00:24:12,100
And I do know, final Arbiter of 
disputes. 

439
00:24:12,300 --> 00:24:15,600
One common objection. 
This is, when you find, for 

440
00:24:15,600 --> 00:24:19,600
example, in Robert didn't Otto, 
who's a randian, who's written a

441
00:24:19,600 --> 00:24:21,300
number of Articles against 
Anarchy. 

442
00:24:21,600 --> 00:24:24,100
He and I have sort of had a 
running debate online about 

443
00:24:24,100 --> 00:24:27,900
this, his principal objection to
Anarchy, is that under Anarchy? 

444
00:24:27,900 --> 00:24:31,200
There's no final Arbiter and 
disputes under government. 

445
00:24:31,200 --> 00:24:34,900
Some final Arbiter at some point
comes along and resolve the 

446
00:24:34,900 --> 00:24:39,400
dispute one way or another well,
under Anarchy since there's no 

447
00:24:39,400 --> 00:24:42,800
agency that has the right to 
settle things once and for all 

448
00:24:43,100 --> 00:24:45,700
there's no fun. 
Anil Arbiter and so disputes in 

449
00:24:45,700 --> 00:24:47,500
some sense. 
Never end. 

450
00:24:47,800 --> 00:24:51,800
They never get resolved. 
They always remain open ended. 

451
00:24:53,200 --> 00:24:55,600
So what's the answer to that? 
Well, I think there's an 

452
00:24:55,600 --> 00:24:59,000
ambiguity to the concept here. 
Are they a final Arbiter by 

453
00:24:59,100 --> 00:25:01,900
final Arbiter? 
You could mean the final Arbiter

454
00:25:02,000 --> 00:25:07,000
in what I call the playtonic 
sense that is to say someone or 

455
00:25:07,000 --> 00:25:09,800
something or some institution 
that somehow absolutely 

456
00:25:09,800 --> 00:25:13,400
guarantees that the dispute is 
resolved forever that absolutely

457
00:25:13,400 --> 00:25:19,000
guarantees the resolution. 
Or instead by final Arbiter, you

458
00:25:19,000 --> 00:25:22,100
could simply mean some person or
a process of institution or 

459
00:25:22,100 --> 00:25:26,100
something or other that more or 
less reliably guarantees, most 

460
00:25:26,100 --> 00:25:29,100
of the time that these problems 
get resolved. 

461
00:25:30,700 --> 00:25:33,900
Now it is true that in the 
platonic sense of an absolute 

462
00:25:33,900 --> 00:25:36,100
guarantee of a final Arbiter. 
In that sense. 

463
00:25:36,500 --> 00:25:39,800
Anarchy does not provide one. 
But neither does any other 

464
00:25:39,800 --> 00:25:41,900
system. 
Take a Min artist constitutional

465
00:25:41,900 --> 00:25:45,900
republic, the sort that Ben and 
I do favors. 

466
00:25:46,100 --> 00:25:49,400
Is there a final Arbiter under 
the system in the sense of 

467
00:25:49,400 --> 00:25:52,900
something that absolutely 
guarantees ending the process of

468
00:25:52,900 --> 00:25:56,500
dispute forever. 
Well, I sue you or I've been 

469
00:25:56,500 --> 00:25:58,300
sued or I'm accused of 
something. 

470
00:25:58,300 --> 00:26:01,100
Whatever. 
I'm in some kind of Court case, 

471
00:26:01,100 --> 00:26:02,400
I lose it. 
I appeal it. 

472
00:26:02,600 --> 00:26:04,300
I appeal it. 
It goes to the Supreme Court. 

473
00:26:04,300 --> 00:26:06,600
They go against me. 
I Lobby Congress to change the 

474
00:26:06,600 --> 00:26:08,500
laws in favor me. 
They don't do it. 

475
00:26:09,000 --> 00:26:12,500
So I try to get a movement for a
constitutional amendment going 

476
00:26:12,800 --> 00:26:15,000
that fail. 
So, I try to get people together

477
00:26:15,000 --> 00:26:18,800
to vote a new people in 
Congress, who will vote for it. 

478
00:26:19,300 --> 00:26:22,000
In some sense. 
It can go on forever. 

479
00:26:22,000 --> 00:26:26,700
The dispute isn't over. 
But as a matter of fact, most of

480
00:26:26,700 --> 00:26:29,100
the time, legal disputes, 
eventually end. 

481
00:26:29,500 --> 00:26:33,300
Someone finds it too costly to 
continue fighting likewise under

482
00:26:33,300 --> 00:26:36,500
Anarchy, of course, there's no 
guarantee that the conflict 

483
00:26:36,500 --> 00:26:39,400
won't go on forever. 
There are very few guarantees of

484
00:26:39,400 --> 00:26:43,400
that Ironclad sort, but there's 
no reason not to expect it to 

485
00:26:43,400 --> 00:26:48,100
work. 
Objection number six property, 

486
00:26:48,100 --> 00:26:51,200
law. 
Cannot emerge from the market. 

487
00:26:51,200 --> 00:26:55,900
Another popular argument also 
used Often by Randy ins is that 

488
00:26:55,900 --> 00:26:59,200
market exchanges, presuppose a 
background of property law. 

489
00:26:59,500 --> 00:27:02,700
You and I can't be making 
exchanges of goods for services 

490
00:27:02,900 --> 00:27:06,300
or money for services or 
whatever unless there's already 

491
00:27:06,300 --> 00:27:10,100
a stable background of property 
law, that ensures us the 

492
00:27:10,100 --> 00:27:13,800
property titles we have. 
And, because the market in order

493
00:27:13,800 --> 00:27:17,300
to function Suppose has existing
background property law. 

494
00:27:17,900 --> 00:27:22,100
Therefore, that property law 
cannot itself, be the product of

495
00:27:22,100 --> 00:27:25,000
the market. 
The property law must emerge. 

496
00:27:25,300 --> 00:27:28,700
They must really think, it must 
emerge out of an infallible, 

497
00:27:28,700 --> 00:27:33,200
robot or something, but I don't 
know exactly what it emerges 

498
00:27:33,200 --> 00:27:36,900
from, but somehow, it can't 
emerge from the market. 

499
00:27:37,300 --> 00:27:42,200
So, the argument goes, But their
thinking is sort of like this 

500
00:27:43,100 --> 00:27:46,100
first. 
There's this property law, and 

501
00:27:46,100 --> 00:27:48,800
it's all put in place and no 
Market transactions are 

502
00:27:48,800 --> 00:27:51,400
happening. 
Everyone is just waiting for the

503
00:27:51,400 --> 00:27:54,800
whole legal structure to be put 
in place and then it's in place 

504
00:27:54,900 --> 00:27:57,600
and now we can finally start 
trading back and forth. 

505
00:27:58,000 --> 00:28:01,100
It certainly is true that you 
can't have functioning markets 

506
00:28:01,100 --> 00:28:02,900
without a functioning legal 
system. 

507
00:28:03,100 --> 00:28:06,600
That's true, but it's not as 
though the first legal system is

508
00:28:06,600 --> 00:28:09,600
in place. 
And then on the last day, they 

509
00:28:09,800 --> 00:28:12,600
Italy, finished putting the 
legal system together. 

510
00:28:12,800 --> 00:28:15,600
Then the people begin their 
trading, these things arise 

511
00:28:15,600 --> 00:28:20,400
together, legal institutions and
economic trade arise together in

512
00:28:20,400 --> 00:28:24,600
one and the same place at one. 
In the same time. 

513
00:28:24,800 --> 00:28:27,500
The legal system is not 
something independent of the 

514
00:28:27,500 --> 00:28:29,100
activity. 
It constrains. 

515
00:28:29,300 --> 00:28:33,600
After all, a legal system again 
is not a robot or a God or 

516
00:28:33,600 --> 00:28:36,700
something separate from us, the 
existence of a legal system 

517
00:28:36,700 --> 00:28:41,200
consists in people obeying it if
We won ignored the legal system.

518
00:28:41,300 --> 00:28:44,400
It would have no power at all. 
So it's only because people 

519
00:28:44,400 --> 00:28:49,300
generally go along with it that 
it survives, the legal system to

520
00:28:49,600 --> 00:28:55,100
depends on voluntary support. 
I think that a lot of people, 

521
00:28:55,600 --> 00:28:59,400
one reason that they're scared 
of Anarchy is they think that 

522
00:28:59,400 --> 00:29:03,300
under government it's as though 
there's some kind of guarantee 

523
00:29:03,500 --> 00:29:07,700
that's taken away under Anarchy 
that somehow there's this firm 

524
00:29:07,700 --> 00:29:11,000
background. 
We can always fall back on that 

525
00:29:11,000 --> 00:29:12,900
under Anarchy. 
It's just gone. 

526
00:29:13,400 --> 00:29:16,000
But the firm background is just 
the product of people 

527
00:29:16,000 --> 00:29:19,200
interacting with incentives that
they have. 

528
00:29:19,600 --> 00:29:22,400
Likewise when anarchists a 
people under an He would 

529
00:29:22,400 --> 00:29:25,800
probably have the incentive to 
do this or that, and people say,

530
00:29:26,200 --> 00:29:30,800
well that's not good enough. 
I just don't want it to be 

531
00:29:30,800 --> 00:29:33,800
likely, they'll have the 
incentive to do this. 

532
00:29:33,800 --> 00:29:37,000
I want the government to 
absolutely guarantee that 

533
00:29:37,000 --> 00:29:41,100
they'll do it. 
But the government is just 

534
00:29:41,100 --> 00:29:44,800
people and depending on what the
Constitutional structure of the 

535
00:29:44,800 --> 00:29:47,800
government is. 
It's likely that they'll do this

536
00:29:47,800 --> 00:29:51,300
or that you can't design a 
constitution that will guarantee

537
00:29:51,500 --> 00:29:53,700
that the people in the 
government will behave in any 

538
00:29:53,700 --> 00:29:56,200
particular way. 
You can structure it in such a 

539
00:29:56,200 --> 00:30:00,800
way so that they're more likely 
to do this or less likely to do 

540
00:30:00,800 --> 00:30:05,500
that and you can see Anarchy as 
just an extension of checks and 

541
00:30:05,500 --> 00:30:12,400
balances to a broader level. 
For example, people say what 

542
00:30:12,400 --> 00:30:15,800
guarantees that the different 
agencies will resolve things in 

543
00:30:15,800 --> 00:30:19,500
any particular way. 
Well, the US Constitution says, 

544
00:30:19,500 --> 00:30:22,100
nothing about what happens if 
different branches of the 

545
00:30:22,100 --> 00:30:24,300
government disagree about how to
resolve things. 

546
00:30:24,600 --> 00:30:27,500
It doesn't say what happens if 
the Supreme Court thinks 

547
00:30:27,500 --> 00:30:31,000
something is unconstitutional. 
But Congress thinks it doesn't 

548
00:30:31,000 --> 00:30:33,600
and wants to go ahead and do it.
Anyway, famously. 

549
00:30:33,800 --> 00:30:37,100
It doesn't say what happens if 
there's a dispute between the 

550
00:30:37,100 --> 00:30:42,300
states and the Federal I meant 
the current system where once 

551
00:30:42,400 --> 00:30:45,600
the Supreme Court, declare 
something unconstitutional, then

552
00:30:45,600 --> 00:30:48,300
the Congress and the president. 
Don't try to do it anymore. 

553
00:30:48,300 --> 00:30:51,000
Or at least not as much that 
didn't always exist. 

554
00:30:51,200 --> 00:30:55,200
Remember when the court declared
that what Andrew Jackson was 

555
00:30:55,200 --> 00:30:57,900
doing was unconstitutional. 
When he was president. 

556
00:30:57,900 --> 00:31:00,400
He just said, well, they've made
that decision. 

557
00:31:00,400 --> 00:31:04,100
Let them enforce it. 
The Constitution doesn't say 

558
00:31:04,400 --> 00:31:07,200
whether the way Jackson did, it 
was the right way. 

559
00:31:09,600 --> 00:31:13,600
The way we do it now is just the
way that's emerged through 

560
00:31:13,600 --> 00:31:16,000
custom, maybe your for it. 
Maybe you're against it, 

561
00:31:16,000 --> 00:31:19,000
whatever it is. 
It was never codified in law. 

562
00:31:20,600 --> 00:31:23,700
Objection. 
Number seven, organized crime 

563
00:31:23,700 --> 00:31:27,100
will take over one objection. 
Is that under Anarchy? 

564
00:31:27,100 --> 00:31:28,800
Organized crime. 
Will take over. 

565
00:31:29,300 --> 00:31:32,200
Well, it might. 
But is it likely organized 

566
00:31:32,200 --> 00:31:33,600
crime? 
Gets its power because it 

567
00:31:33,600 --> 00:31:37,400
specializes in things that are 
illegal, things like drugs, 

568
00:31:37,400 --> 00:31:40,400
alcohol prostitution. 
And so During the years, when 

569
00:31:40,400 --> 00:31:44,000
alcohol was prohibited organized
crime, specialized in the 

570
00:31:44,000 --> 00:31:47,500
alcohol trade nowadays, there 
are not so big in the alcohol 

571
00:31:47,500 --> 00:31:49,900
trade. 
So the power of organized crime 

572
00:31:49,900 --> 00:31:54,300
to a large extent, depends on 
the power of government. 

573
00:31:54,300 --> 00:31:57,200
It's sort of a parasite on the 
government's activities 

574
00:31:57,500 --> 00:32:00,400
governments by Banning things 
create black markets. 

575
00:32:00,500 --> 00:32:04,200
Black markets are dangerous 
things to be in because you have

576
00:32:04,200 --> 00:32:08,900
to worry both about the 
government and about other dodgy

577
00:32:08,900 --> 00:32:10,700
people. 
People who are going to be in 

578
00:32:10,700 --> 00:32:14,200
the black market filled. 
Organized crime, specializes in 

579
00:32:14,200 --> 00:32:16,500
that. 
So We're Goin eyes crime. 

580
00:32:17,400 --> 00:32:21,000
I think would be weaker not 
stronger in a Libertarian 

581
00:32:21,000 --> 00:32:25,200
system. 
Objection number 8, the rich 

582
00:32:25,200 --> 00:32:28,300
will rule. 
Another worry, is that the rich 

583
00:32:28,300 --> 00:32:32,800
would rule under Anarchy after? 
All won't Justice. 

584
00:32:32,800 --> 00:32:35,200
Just go to the highest bidder. 
In that case. 

585
00:32:35,600 --> 00:32:39,000
If you turn Legal Services into 
an economic good, that's a 

586
00:32:39,008 --> 00:32:40,700
common objection. 
Interestingly. 

587
00:32:41,000 --> 00:32:43,000
It's a particularly common 
objection. 

588
00:32:43,000 --> 00:32:46,000
Among Randy ends who suddenly 
become very concerned about the 

589
00:32:46,000 --> 00:32:50,600
poor impoverished masses, but 
under which system are the rich,

590
00:32:50,600 --> 00:32:53,800
more powerful. 
Either the current system or 

591
00:32:53,800 --> 00:32:58,400
under Anarchy. 
Certainly, you've always got 

592
00:32:58,400 --> 00:33:00,500
some sort of Advantage. 
If you're rich, it's good to be 

593
00:33:00,500 --> 00:33:02,300
rich. 
You're always in a better 

594
00:33:02,300 --> 00:33:05,400
position, a bride people. 
If you're rich, then if you're 

595
00:33:05,400 --> 00:33:09,300
not, that's true, but under the 
current system, the power of the

596
00:33:09,300 --> 00:33:14,100
riches magnified suppose that 
I'm an evil rich person and I 

597
00:33:14,100 --> 00:33:17,000
want to get the government to do
something or other that cost a 

598
00:33:17,008 --> 00:33:19,600
million dollars. 
Do I have to bribe some 

599
00:33:19,600 --> 00:33:21,800
bureaucrat a million dollars to 
get it done? 

600
00:33:22,200 --> 00:33:24,200
No. 
Because I'm not asking him to do

601
00:33:24,200 --> 00:33:25,300
it with his own money. 
Any. 

602
00:33:25,600 --> 00:33:28,900
Obviously, if I were asking him 
to do it with his own money, I 

603
00:33:28,900 --> 00:33:31,800
couldn't get him to spend a 
million dollars by bribing him 

604
00:33:31,800 --> 00:33:36,500
any less than 1 million. 
It would have to be at least 1 

605
00:33:36,500 --> 00:33:41,300
million dollars in one cent. 
But people who control tax 

606
00:33:41,300 --> 00:33:44,600
money, that they don't 
themselves personally owned and 

607
00:33:44,600 --> 00:33:48,100
therefore can't do whatever they
want with. 

608
00:33:48,600 --> 00:33:52,000
The bureaucrat can't just pocket
a million and go home. 

609
00:33:52,400 --> 00:33:55,000
Although it can get surprisingly
close to. 

610
00:33:55,500 --> 00:33:59,900
All I have to do is bribe him a 
few thousand and he can direct 

611
00:33:59,900 --> 00:34:03,300
this million dollars in tax 
money to my favorite project or 

612
00:34:03,300 --> 00:34:05,700
whatever. 
And thus, the power of my bribe 

613
00:34:05,700 --> 00:34:11,100
money is multiplied. 
Whereas, if you were the head of

614
00:34:11,100 --> 00:34:14,000
some private Protection Agency, 
and I'm trying to get you to do 

615
00:34:14,000 --> 00:34:16,199
something that costs a million 
dollars. 

616
00:34:16,400 --> 00:34:18,500
I'd have to bribe, you more than
a million. 

617
00:34:18,699 --> 00:34:23,100
So the power of the riches 
actually less under Anarchy, and

618
00:34:23,100 --> 00:34:25,600
of course, any court that got 
this reputation of 

619
00:34:25,600 --> 00:34:28,400
discriminating in favor of 
millionaires against poor. 

620
00:34:28,400 --> 00:34:31,400
People would also presumably 
have the reputation of 

621
00:34:31,400 --> 00:34:34,199
discriminating for billionaires 
against millionaires. 

622
00:34:34,400 --> 00:34:37,900
So the millionaires would not 
want to deal with it all of the 

623
00:34:37,900 --> 00:34:40,400
time. 
They'd only want to deal with it

624
00:34:40,699 --> 00:34:42,500
when they're dealing with people
poorer. 

625
00:34:42,500 --> 00:34:45,500
Not people richer the reputation
effects. 

626
00:34:45,800 --> 00:34:48,900
I don't think this would be too 
popular, an outfit. 

627
00:34:51,500 --> 00:34:54,600
Worries about poor victims, who 
can't afford legal services or 

628
00:34:54,600 --> 00:34:56,600
victims, who died without heirs 
again. 

629
00:34:56,600 --> 00:34:59,400
The Randy ends are very worried 
about victims dying without. 

630
00:34:59,400 --> 00:35:01,900
Heirs, in the case of the poor 
victims. 

631
00:35:02,200 --> 00:35:04,900
You can do what they did. 
In medieval Iceland, you're too 

632
00:35:04,900 --> 00:35:07,900
poor to purchase legal services,
but still, if someone has 

633
00:35:07,900 --> 00:35:11,300
harmed, you, you have a claim to
compensation from that person. 

634
00:35:12,200 --> 00:35:16,200
You can sell that claim part of 
the claim or all of the claim to

635
00:35:16,200 --> 00:35:20,100
someone else. 
Actually, it's kind of like 

636
00:35:20,100 --> 00:35:23,400
hiring a lawyer on a contingency
fee basis. 

637
00:35:23,900 --> 00:35:26,900
You can sell to someone who was 
in a position to enforce your 

638
00:35:26,900 --> 00:35:30,800
claim or if you die without 
heirs in a sense, one of the 

639
00:35:30,800 --> 00:35:35,200
goods you left behind was your 
claim to compensation and that 

640
00:35:35,200 --> 00:35:40,000
can be homesteaded. 
Objection number 9 in the masses

641
00:35:40,000 --> 00:35:44,400
will demand bad laws. 
Another worried that bitten Otto

642
00:35:44,400 --> 00:35:47,800
has and this is sort of the 
opposite view that the ritual 

643
00:35:47,800 --> 00:35:50,900
rule is will look isn't mises 
right? 

644
00:35:51,300 --> 00:35:54,600
That the market is like a big 
democracy where there is 

645
00:35:54,600 --> 00:35:58,600
consumer sovereignty in the 
masses, get whatever they want. 

646
00:35:58,800 --> 00:36:01,700
That's great when it's like 
refrigerators and cars and so 

647
00:36:01,700 --> 00:36:04,700
forth, but surely it's not a 
good thing when it's laws 

648
00:36:04,900 --> 00:36:08,900
because after all the masses are
a bunch of I went intolerant 

649
00:36:08,900 --> 00:36:12,500
fools and if they just get 
whatever laws they want, who 

650
00:36:12,500 --> 00:36:14,500
knows what horrible things they 
will make. 

651
00:36:16,300 --> 00:36:19,900
Of course, the difference 
between economic democracy of 

652
00:36:19,900 --> 00:36:23,200
the mises sort, and political 
democracy is well. 

653
00:36:23,400 --> 00:36:25,200
Yeah, they get whatever they 
want. 

654
00:36:25,200 --> 00:36:27,100
But they're going to have to pay
for it. 

655
00:36:27,400 --> 00:36:30,100
Now. 
It's perfectly true, that if you

656
00:36:30,100 --> 00:36:34,500
have people who are fanatical 
enough about wanting to impose, 

657
00:36:34,600 --> 00:36:37,200
some wretched thing on other 
people, you've got a large 

658
00:36:37,200 --> 00:36:40,300
enough group of people who are 
fanatical enough about this. 

659
00:36:40,600 --> 00:36:43,700
Then Anarchy might not lead to 
libertarian results. 

660
00:36:45,300 --> 00:36:48,800
If you live in California, 
you've got enough people who are

661
00:36:48,800 --> 00:36:52,000
absolutely fanatical about 
banning smoking or maybe you 

662
00:36:52,000 --> 00:36:55,300
live in Alabama and it's 
homosexuality instead of 

663
00:36:55,300 --> 00:36:56,600
smoking. 
They want to ban. 

664
00:36:57,000 --> 00:37:01,000
Neither one would ban the other.
I think in that case, it might 

665
00:37:01,000 --> 00:37:05,900
happen that there. 
So fanatical about it that they 

666
00:37:05,900 --> 00:37:08,700
would ban it. 
But remember that they're going 

667
00:37:08,700 --> 00:37:11,300
to have to be paying for this. 
So when you get your monthly 

668
00:37:11,300 --> 00:37:13,900
premium, you'll see, here's your
basic services. 

669
00:37:14,300 --> 00:37:16,000
Then you will go against 
aggression. 

670
00:37:16,000 --> 00:37:19,000
Oh, and here's also your 
extended service. 

671
00:37:19,000 --> 00:37:24,000
The extra fee for that appearing
on to your neighbors window. 

672
00:37:24,000 --> 00:37:28,500
To make sure they're not either 
smoking tobacco or engaging in 

673
00:37:28,500 --> 00:37:32,000
homosexuality or whatever it is.
You're worried about. 

674
00:37:32,200 --> 00:37:35,300
Now, the really fanatical people
will say yes. 

675
00:37:35,300 --> 00:37:37,700
I'm going to Shell out extra 
money for this. 

676
00:37:38,100 --> 00:37:40,300
Of course, if they're that 
fanatical, they're probably 

677
00:37:40,300 --> 00:37:44,900
going to be trouble under 
menarche or statism to But if 

678
00:37:44,900 --> 00:37:49,300
they're not that fanatical, 
they'll say, well, if all I have

679
00:37:49,300 --> 00:37:52,500
to do is go into a voting booth 
and vote for these laws 

680
00:37:52,500 --> 00:37:54,100
restricting, other people's 
freedom. 

681
00:37:54,100 --> 00:37:57,700
Well heck, I'd go in, it's 
pretty easy to go in and just 

682
00:37:57,700 --> 00:38:00,200
vote for it. 
But if they actually have to pay

683
00:38:00,200 --> 00:38:05,100
for it G, I don't know. 
Maybe I can reconcile myself to 

684
00:38:05,100 --> 00:38:09,900
this. 
Objection, number 10, Robert 

685
00:38:09,900 --> 00:38:12,500
nozick and Tyler. 
Cowen, private, protection 

686
00:38:12,500 --> 00:38:15,700
agencies will become a de facto 
government. 

687
00:38:16,000 --> 00:38:19,300
Okay, one last consideration I 
want to talk about this is a 

688
00:38:19,308 --> 00:38:23,000
question that originally was 
raised by Robert nozick and has 

689
00:38:23,000 --> 00:38:24,900
since been pushed further by 
Tyler. 

690
00:38:24,900 --> 00:38:27,700
Cowen nosek said, suppose you 
have Anarchy. 

691
00:38:27,800 --> 00:38:29,900
One of three things will happen 
either. 

692
00:38:29,900 --> 00:38:33,200
The agencies will fight and he 
gives two different scenarios of

693
00:38:33,200 --> 00:38:35,900
what will happen if they fight. 
But I've already talked about 

694
00:38:36,000 --> 00:38:37,900
What happens if they fight. 
So I'll talk about the third 

695
00:38:37,900 --> 00:38:39,800
option. 
What if they don't fight? 

696
00:38:40,000 --> 00:38:44,100
Then he says, if instead they 
agree to these, Mutual 

697
00:38:44,300 --> 00:38:48,200
arbitration contracts and so 
forth, then basically, the whole

698
00:38:48,200 --> 00:38:51,000
thing just turned into a 
government and then Tyler Cowen 

699
00:38:51,000 --> 00:38:52,400
has pushed this argument 
further. 

700
00:38:52,600 --> 00:38:56,900
He said what happens is that 
basically, this forms a cartel 

701
00:38:57,100 --> 00:39:00,500
and it's going to be in the 
interest of this cartel to sort 

702
00:39:00,500 --> 00:39:05,100
of turn itself into a government
and any new agency that comes 

703
00:39:05,100 --> 00:39:07,300
along. 
You can just boycott it. 

704
00:39:10,500 --> 00:39:12,200
That's great. 
The worst thing that could 

705
00:39:12,200 --> 00:39:14,400
happen on her. 
Anarchy is government. 

706
00:39:14,600 --> 00:39:20,400
So I'm an advocate government. 
Going on, just as it's in your 

707
00:39:20,400 --> 00:39:23,600
interest. 
If you come along with in new 

708
00:39:23,600 --> 00:39:26,800
ATM card, that it can be 
compatible with everyone else's 

709
00:39:26,800 --> 00:39:29,000
machines. 
So if you come along with a 

710
00:39:29,000 --> 00:39:33,000
brand-new Protection Agency, it 
is in your interest that you get

711
00:39:33,000 --> 00:39:36,800
to be part of this system of 
contracts and arbitration and so

712
00:39:36,800 --> 00:39:40,600
forth that the existing ones 
have consumers aren't going to 

713
00:39:40,600 --> 00:39:44,700
come to you if they find you 
don't have any agreements as to 

714
00:39:44,700 --> 00:39:47,600
what happens if you're in a 
conflict with these other. 

715
00:39:47,700 --> 00:39:52,200
These and so on, this cartel 
will be able to freeze everyone 

716
00:39:52,300 --> 00:39:56,200
out. 
Well, could that happen? 

717
00:39:56,600 --> 00:39:58,600
Sure. 
All kinds of things can happen, 

718
00:39:58,600 --> 00:40:01,900
half the country could commit 
suicide tomorrow, but is it 

719
00:40:01,900 --> 00:40:05,800
likely, is this cartel likely to
be able to abuse its power in 

720
00:40:05,800 --> 00:40:08,000
this way. 
The problem is cartels are 

721
00:40:08,000 --> 00:40:11,000
unstable for all the usual 
reasons. 

722
00:40:11,300 --> 00:40:14,500
That doesn't mean that it's 
impossible, that a cartel 

723
00:40:14,800 --> 00:40:17,000
succeed. 
After all, people have free 

724
00:40:17,000 --> 00:40:20,200
will, but it's unlikely because 
the very incentives that lead 

725
00:40:20,200 --> 00:40:23,900
you to form the cartel. 
Also lead you to cheat on it. 

726
00:40:24,100 --> 00:40:26,500
Because it's always in the 
interest of anyone to make 

727
00:40:26,500 --> 00:40:32,000
agreements outside the cartel. 
Once they are in it Bryan 

728
00:40:32,000 --> 00:40:34,500
Caplan. 
The Economist makes a 

729
00:40:34,500 --> 00:40:38,000
distinction between 
self-enforcing boycotts and 

730
00:40:38,000 --> 00:40:41,500
non-self enforcing boycotts. 
Self-enforcing boycotts. 

731
00:40:41,700 --> 00:40:45,500
Are one where the boycott is 
pretty stable because it's a 

732
00:40:45,500 --> 00:40:48,700
boycott against, for example, 
doing business with people who 

733
00:40:48,700 --> 00:40:52,500
cheated their business partners.
Now, you don't have to have some

734
00:40:52,600 --> 00:40:55,800
iron resolve. 
Of moral commitment in order to 

735
00:40:55,800 --> 00:40:59,200
avoid doing business with people
who cheat their business 

736
00:40:59,200 --> 00:41:03,500
partners, you have a perfectly 
self-interested reason not to do

737
00:41:03,500 --> 00:41:08,500
business with those people. 
But think, instead of a 

738
00:41:08,508 --> 00:41:11,400
commitment not to do business 
with someone because you don't 

739
00:41:11,400 --> 00:41:14,900
like their religion or something
like that, or they're a member 

740
00:41:14,900 --> 00:41:18,900
of the wrong Protection Agency. 
One that your fellow protection 

741
00:41:18,900 --> 00:41:20,700
agencies told you not to deal 
with. 

742
00:41:20,700 --> 00:41:23,800
Well, the boycott might work. 
Maybe enough people. 

743
00:41:24,000 --> 00:41:26,500
And maybe everyone in this 
cartel is so committed to 

744
00:41:26,500 --> 00:41:29,300
upholding the cartel that they 
just won't deal with this 

745
00:41:29,300 --> 00:41:31,600
person. 
Is that possible? 

746
00:41:31,600 --> 00:41:35,100
Yes, but if we assume that they 
form the cartel out of their own

747
00:41:35,300 --> 00:41:38,600
economic self-interest than the 
economic self-interest is 

748
00:41:38,600 --> 00:41:42,400
precisely what leads to the 
undermining because it's in 

749
00:41:42,400 --> 00:41:46,200
their interest to deal with the 
person just as it's always in 

750
00:41:46,200 --> 00:41:48,000
your interest to engage in.
