Free Market Anti-Statism

FREE MARKET ANTI-STATISM

A free market (sometimes referred to as free trade) has not been
adequately delineated. It means much more than lower tariffs or less
protectionism between nation states. In essence, it means that buyers
and sellers, exchangers of goods and services, can proceed without
intervention or hindrance from any outside party. It applies to
economic activities of individuals, businesses, and organizations both
within and between national boundaries.

IN PRAISE OF THE FREE MARKET

The free market is the wonder of the world. Millions of transactions
for products; goods, merchandise, commodities; take place continuously
from across the street to across the continents. These are peaceful,
voluntary exchanges, usually through the medium of money, in which
there is a perceived mutual benefit. There is an old cliche which is
worth considering, that "where goods do not cross boundaries armies
will."
In the long history of mankind, what has clearly distinguished the
human from the animal is trading, exchanging, or buying and selling a
variety of merchandise. The development of markets has mirrored the
progress from barbarism to civilization.


UNDERMINING THE FREE MARKET
Both on a national and local level, there are many ways in which
legislation interferes with the markets. Following is a list of most
(but not necessarily all) political intervention in commerce or trade.

taxation

tariffs

quotas

subsidies

embargoes

licenses

patents and

currency manipulation.


FREE MARKET OR THE STATE
The state was born in force, plunder, and exploitation. It may be
defined as an attempt by a cabal to establish a monopoly of coercion
and retribution over a specific geographical area. Once established,
its most essential function is the use of the political means rather
than the economic means by which some are enabled to obtain the wealth
produced by others.

It cannot be denied that there are degrees of deviation from free
market principles. More enlightened states have allowed some autonomy
to the "body economic." But even the least interventionist states
exhibit a mere caricature of free trade or free markets.


THE BEDROCK OF STATISM
Take away all the methods of undermining the markets such as taxation,
tariffs, subsidies, licenses, patents, etc., and there are still two
major impediments to their efficient operation. They are


LAND MONOPOLY
MONEY MONOPOLY

Historically, land-grabbing and the bestowal of land titles is
coextensive with the growth of state power. Favoritism, corruption,
and fraud are the invariable concomitants of property in land. But
"ground rent seeking" which represents the actual or anticipated
(speculative) yield from ownership of land works counter to the
operation of free markets. The landowner can, and often does, get rich
in his sleep. He is rewarded for the unproductive effort of holding,
which may be for decades. The seller of goods, merchandise,
commodities (i.e wealth) must find customers fairly promptly or end up
with losses and sometimes bankruptcy. For details of the process see
the link-POLITICAL ECONOMY PRIMER-below.

Despite the paeans to "free enterprise" and "free trade", the state
system of land tenure and the state imposed money monopoly inexorably
leads to increased statism. The state and the free market are
irreconcilable.

LINKS

Champions of Liberty

Political Economy Primer

Perpetual War for Perpetual Peace

radav@xxxxxxxxx

6/27/05

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