Chicken Or Egg

On a recent episode of Lions Of Liberty, Marc Clair interviewed John Perkins, author of New Confessions of An Economic Hitman. During the discussion, Mr. Clair described the power of government leveraged by big business as a chicken and egg situation. This is not an uncommon conclusion considering that libertarians and anarchists point to the government as the problem while progressives point to the greed of business as the source of corruption. However, assessing the question logically, one of these is clearly the primary culprit.

There are three possible configurations of any social structure: statelessness where business is subject completely to the whim of the market (i.e. anarchy), a coexistence of state and business, or complete ownership of the means of production by the state (i.e. communism or socialism). Needless to say, any practical application of the middle configuration would appear on a continuum between no state and complete control by the state. It is in this configuration we find ourselves today.

Where states exist, state actors claim powers which exceed natural rights. For example, the U.S. federal government claims a power to tax citizens (i.e. expropriate private property) as a means of raising funds to maintain government agencies. Such a power does not naturally exist and could not be exercised by someone outside of the government.

Since humans act purposefully, applying available means to achieve desired ends, it would be natural for anyone claiming the power of expropriation to exercise that power when they deem necessary. Similarly, anyone not directly possessing such power would seek avenues through which it could be wielded on their behalf. In a free market, businesses have no such power to expropriate: they must serve consumers in order to reap benefits from them. However, when the power of the state can result in greater profits for less cost, businesses will naturally seek access to that power.

In a stateless society, no person, group, or business can legitimately claim powers over others. The state introduces such claims to power and, as a result, the corruption inherent in it.

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