Juan:I admit I always thought that minimal governments were supposed to be funded using taxation. I can't imagine how a minimal government based on contributions would work. It would still be a monopolistic provider of services, SO, its services would be low quality, SO people won't pay. So, what's next ? Some people set up a competing government ? Wouldn't that be market-anarchism ?
Juan, it's supported by the same naive idealism that seems to support Market Anarchism: Libertarians either deny the existence of public goods or they say that self-interest is a driving force in establishing public goods and government just stands in the way.
According to Nozick, if regulation was minimal and taxation was made voluntary, we wouldn't need to radically abolish the government. Radically abolishing the government would lead to chaos -- ironically, Rothbard acknowledges this. Like I said, from what I've recently read about Rothbard's beliefs on constitutionalism, I don't really see how Nozick or Rothbard had genuine disagreements, just disagreements over semantics -- mostly just that Rothbard was incoherent in calling himself an "Anarchist."
Brainpolice:
Juan:I admit I always thought that minimal governments were supposed to be funded using taxation. I can't imagine how a minimal government based on contributions would work. It would still be a monopolistic provider of services, SO, its services would be low quality, SO people won't pay. So, what's next ? Some people set up a competing government ? Wouldn't that be market-anarchism ?
That's sort of the position of Objectivists. They propose to make the funding voluntary yet they still want to maintain a territorial monopoly, I.E. they would forcibly outlaw competition. So if only they would give up the territorial monopoly they would be market anarchists. As soon as they grant genuine competition in their so-called "governments", it becomes anarchism.
OK, maybe this is one disagreement between Nozick and Rothbard: Nozick seemed to have a Neoclassical view of monopolies. He acknowledged they existed, but he didn't think they were bad because they only exist to begin with due to economies of scale and price is driven downward by potential competition.
To apply this reasoning to the "monopoly" of government: Governments only develop because large amounts of INDIVIDUALS support them, because they believe in principles of coercion. In a democracy where over 50% of the voting population are Libertarians, it's not clear how the mere existence of government as a monopoly would lead to oppression.
Furthermore, government (like other monopolies) doesn't have absolute control. For instance, even if taxation is theft, the government has to mislead the public by how much they're actually stealing through a complicated tax policy. If the people knew, they wouldn't tolerate it.
Under Minarchism, then, there isn't any problem because everybody knows what the government does: providing basic security and protection of property rights through civil law and that's all. Under such a system -- assuming Neoclassical ideas -- there wouldn't be any problem with the government being a "monopoly." If the government tried to grow any larger than Minarchism, the people have the natural right of revolt (as described by John Locke) and they would do that, because it's in their subjective self-interest.
The government, as it stands now, is not to be understood as a problem because it's a "monopoly" anymore than large firms should ber regarded as problematic for having large market share: The problem is that it's gotten out of hand, where it infringes on liberty and the public isn't aware of it. Under Minarchism, both of those conditions would not exist, thus "tyrannical" government would not exist.
"Austrian economics and freedom are not synonymous." -JAlanKatz