G I: R H: Overnmental Nevitability Eply To Olcombe
G I: R H: Overnmental Nevitability Eply To Olcombe
G I: R H: Overnmental Nevitability Eply To Olcombe
OLUME
L IBERTARIAN S TUDIES
19, NO. 3 (SUMMER 2005): 71–93
GOVERNMENTAL INEVITABILITY:
REPLY TO HOLCOMBE
WALTER BLOCK
Walter Block is Harold E. Wirth Eminent Scholar Endowed Chair and profes-
sor of economics, College of Business Administration, Loyola University
New Orleans. wblock@loyno.edu.
71
72 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
find that the so-called Western world had far too much wealth and
the rest of the world, in particular China and India, had far too lit-
tle, and hence, that a systematic wealth and income redistribution
would be called for.
According to Holcombe’s hypothesis, we should forthwith,
without hesitation, immediately create a world government? Why?
Because if we do not, people worse than ourselves will eventually do
so, and then we will be forced to suffer under their rule. Strictly,
speaking, of course, world government is unnecessary. Private
defense agencies and/or individual nations are perfectly capable of
providing all the defense services and “public goods” any of us
require, or ever will require. But a world government is inevitable.
That being the case, better that we install one of our own as soon as
possible, than that they, the evil ones, do so.
When put in these terms, the “logic” of the argument is plain to
see. First of all, we have survived all these many years, nay, cen-
turies, without the benefits of any world government. It is difficult to
see that it is “inevitable.” Second, even if it is unavoidable, arguendo,
we are still required, as moral agents, to oppose this evil institution
to our utmost. After all, no man is perfect. We all have flaws. In this
sense, imperfection, too, is “inevitable.” Does this mean we are
somehow off the hook if we fail to ethically improve ourselves? Of
course not. The only proper course of action is to strive mightily
against the evil in our own hearts, no matter that we are predestined
never to fully eradicate it. Holcombe is saying, in effect, “If rape is
inevitable, relax and enjoy it.” I am saying, “Even if rape is
inevitable, keep fighting against this injustice.”
Then, too, “inevitability” springs only awkwardly from the pen
of an economist such as Holcombe, for all such claims run head on
into the primordial fact of free will.1 If people can make choices—and
they can—then nothing concerning human institutions can be
“inevitable.” To attempt to deny free will is, of necessity, to engage in
it. When something cannot be denied apart from pain of self-contra-
diction, we can interpret it as necessarily occurring. Thus, government
is not inevitable; only free will is. And, with the latter, the inevitable
status of the state cannot logically be entertained, let alone insisted
upon, as per Holcombe.
On the contrary, whether the state remains with us will stem
from decisions people make; they are just as free to keep a govern-
ment in their repertoire as to reject it.
1
See Mises (1978).
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 73
INSURANCE
Holcombe claims he sees the government as unnecessary in that pri-
vate institutions can readily take over its provision of defense.
However, he does not fully subscribe to this correct notion. I say that
because Holcombe criticizes one of the leading authorities on this
issue, Hans-Hermann Hoppe (1998/99), who claims that insurance
firms can provide defense services. Holcombe (2004, p. 327, n. 8),
condemns Hoppe’s argument on the following ground:
In the absence of government, if companies offered insurance
against losses from foreign invasion, they might find it cheaper to
pay their policyholders for their losses than to provide defense
services to protect them.
But this analysis must be rejected at the outset. If the foreign
invaders take over, it is likely, according to Holcombe’s own reason-
ing, that they will be worse predators than the home-grown variety. If
so, the probability is that the intruders will nationalize the entire
assets of the domestic insurance industry. Thus, the insurance firm,
in the absence of a local government, will be forced willy-nilly into
providing not only a promise to indemnify, but also into putting its
shoulder to the wheel of defending its clients and itself.
GENESIS OF GOVERNMENT
In Holcombe’s (2004, p. 328) view:
The argument that people should do away with government
because everything the government does the private sector can do
better would be persuasive if governments were created, as their
rationales suggest, to improve their subjects’ well-being. In fact,
governments are not created to improve the public’s well-being.
In most cases, governments have been imposed on people by
force . . . for the purpose of extracting resources from subjects and
transferring the control of those resources to those in government.
This, strictly speaking, is a logical fallacy. It implies, nay, boldly
states, that “the argument that people should do away with govern-
ment because everything the government does the private sector can
do better” is not persuasive. In my view, however, it is very convinc-
ing. It cannot be denied, as Holcombe asserts, that governments were
created not to enhance the general welfare, but rather as an exercise
in predation and resource extraction.
But this is beside the point. The reason that government now
endures, as opposed to Holcombe’s correct explanation concerning
its birth, is in large part because of two things. First, it is widely
thought that government is inevitable, the very message he himself
74 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
IMPLICATION?
In Holcombe’s (2004, p. 328; emphasis added) view:
Governments were created by force to rule over people and extract
resources from them. Thus the argument that citizens would be
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 75
HOBBES
Holcombe (2004, p. 329) calls upon Hobbes’s rejection of “anarchy in
which nobody prospers because nobody has an incentive to be pro-
ductive.” Roderick Long’s (2004) reply is worthy of quotation in full:
Probably the most famous argument against anarchy is Hobbes.
Hobbes’ argument is: well, look, human cooperation, social cooper-
ation, requires a structure of law in the background. The reason we
can trust each other to cooperate is because we know that there are
legal forces that will punish us if we violate each other’s rights. I
know that they’ll punish me if I violate your rights, but they’ll also
punish you if you violate my rights. And so I can trust you because
I don’t have to rely on your own personal character. I just have to
rely on the fact that you’ll be intimidated by the law. So, social
cooperation requires this legal framework backed up by force of the
state.
But all those assumptions are false. It’s certainly true that coopera-
tion can and does emerge, maybe not as efficiently as it would with
76 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
law, but without law. There’s Robert Ellickson’s book Order Without
Law where he talks about how neighbors manage to resolve dis-
putes. He offers all these examples about what happens if one
farmer’s cow wanders onto another farmer’s territory and they
solve it through some mutual customary agreements and so forth,
and there’s no legal framework for resolving it. Maybe that’s not
enough for a complex economy, but it certainly shows that you can
have some kind of cooperation without an actual legal framework.
And third, you can have formal legal systems that do use force that
are not monopolistic. Since Hobbes doesn’t even consider that pos-
sibility, he doesn’t really give any argument against it. But you can
certainly see examples in history. The history of medieval Iceland,
for example, where there was no one center of enforcement.
Although there was something that you might perhaps call a gov-
ernment, it had no executive arm at all. It had no police, no soldiers,
no nothing. It had a sort of a competitive court system. But then
enforcement was just up to whoever. And there were systems that
evolved for taking care of that.
MAFIA
Holcombe (2004, p. 329) writes: “The evolution of predatory bandits
into mafias (protection firms) and thence into governments may be
inevitable.”2
There are two problems here. First, the equation of a “mafia”
with a “protection firm” is not easy to defend. Yes, the Mafia some-
times does good works. In the movie Godfather I, Don Corleone
refused the baker’s request to kill those who raped his daughter, but
he authorized a severe beating for these miscreants, an act fully com-
patible with libertarian punishment theory.3 But the Mafia in large
part is dependent upon governmental victimless crime legislation;
without laws against drugs, pornography, prostitution, etc., most of
2
For a magnificent illustration of this contention, see Rothbard, “A Fable for
Our Times By One of the Unreconstructed.”
3
See Kinsella (1996, pp. 51–74).
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 77
WORLD GOVERNMENT
If it is “inevitable” that the individual, or small group will evolve
into a national government, why is it any less certain that the
4
See Rothbard (1978, 1982) and Hoppe (1998/99, 2001).
78 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
5
The similarity between national governments and competing defense agen-
cies is a rather poor one, in that the former necessarily initiates violence
while the latter logically cannot—if it does, it is no longer a defense agency.
On the former, see Cuzan (1979, pp. 151–58); Hoppe (1993, 2001, 2003); Long
(2004); Rothbard (1973; 1978, pp. 191–207; 1998/99, pp. 53–77).
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 79
The question is: what’s likely? Which is likelier to settle its disputes
through violence: a government or a private protection agency?
Well, the difference is that private protection agencies have to bear
the costs of their own decisions to go to war. Going to war is expen-
sive. If you have a choice between two protection agencies, and one
solves its disputes through violence most of the time, and the other
one solves its disputes through arbitration most of the time—now,
you might think, “I want the one that solves its disputes through
violence—that sounds really cool!” But then you look at your
monthly premiums. And you think, well, how committed are you
to this Viking mentality? Now, you might be so committed to the
Viking mentality that you’re willing to pay for it; but still, it is more
expensive. A lot of customers are going to say, “I want to go to one
that doesn’t charge all this extra amount for the violence.” Whereas,
governments—first of all, they’ve got captive customers, they can’t
go anywhere else—but since they’re taxing the customers anyway,
and so the customers don’t have the option to switch to a different
agency. And so, governments can externalize the costs of their
going to war much more effectively than private agencies can.
NOZICK
Holcombe (2004, p. 330) next opines that
[t]he problem is even more acute if Nozick is correct in arguing that
there is a natural monopoly in the industry. In that case, firms must
add to their customer base or lose out to larger firms in the compe-
tition.
80 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
PROFIT MAXIMIZATION
Similarly, Holcombe (2004, p. 331) writes that “profit-maximizing
firms . . . can be expected to employ (their assets) in the dual roles of
protection and predation.” Further:
[P]rotection firms might want to display their excess capacity to use
violence conspicuously, in part to reassures their customer and in
part to deter aggressors. They also might use these resources, how-
ever, in a predatory manner against nonclients.
Who knows? Maybe any or all of this could occur. Perhaps com-
puter firms could prosper by secretly creating viruses and then sell-
ing cures for them. Maybe car repair companies could maximize
profits by going about in the dead of night dismantling autos, and
hoping some of the owners would patronize them; or, better yet, as
they repair one aspect of an automobile, purposefully break another,
6
See the Nozick symposium in the Journal of Libertarian Studies (Winter, 1977)
including Randy Barnett, Roy A. Childs, Williamson M. Evers, Murray N.
Rothbard, and John T. Sanders.
7
For the argument against “natural monopoly” in economics, see Anderson
et al. (2001, pp. 287–302) and Rothbard (1970).
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 81
in such a way that the need for fixing the latter will only be discov-
ered later. It is also within the realm of possibility that physicians and
pharmaceutical companies would spread disease, and then charge to
alleviate their patients of them. Then there are the manufacturers
who gain from planned obsolescence. Conceivably, all of these things
could occur. But this sounds like the superficial criticisms of capital-
ism offered by socialists and other know-nothings, rather than seri-
ous economic analysis.
We are derelict in our duty if we do not ask under which condi-
tions, statism or markets, are these horror scenarios more likely to
occur. And to ask this question is to answer it. Surely, it is in the
realm of government, not free enterprise, where this is more probable.
As for war, consider the movie Wag the Dog for a fictional account of
President Clinton’s decision to bomb Bosnia in order to deflect atten-
tion from himself and his own troubles (newline.com 2001).
CIRCULAR ARGUMENT?
Holcombe (2004, p. 332) claims:
In the analysis of protection firms, this assumption of voluntary
exchange amounts to an assumption the industry’s output is
already being produced—as a prerequisite for showing that it can
be produced by the market! As a simple matter of logic, one cannot
assume a conclusion to be true as a condition for showing that it is
true. This problem makes the production of protection services a
special case from the standpoint of economic analysis.
Are people who argue for ordered anarchy guilty of circular rea-
soning? Not a bit of it. No more so, leastways, than those who main-
tain that any other good or service can be supplied by the market.
Take food, for example. I go out on a limb and hereby claim that
free enterprise is capable of supplying groceries. Aha, says
Holcombe, if he consistently pursues the “logic” of the argument
above: “But no farmer would grow much of anything if his property
rights were not reasonably secure. And without food, it would be
impossible for anyone to supply the defense necessary to plant and
harvest in the first place! Neither government nor private protection
agencies can make their rounds unfed. To assume they are not starv-
ing is to argue in a circle.”
In this manner, any (important enough) good or service (food
and defense, as we have seen, but also money, metals, or labor) can
be shown not to be economically viable, by private or government
provision. For none of these things can be supplied in a vacuum. Not
a one of them can be offered by anyone unless still other instrumen-
talities are in place. Money or copper cannot be created by anyone,
82 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
8
The diamond-water paradox suggests that water, being necessary to human
existence, is more important than are diamonds. Yet, diamonds are more
expensive than is water, an apparent paradox. The common sense solution
to the paradox concerns relative availabilities of diamonds and water, and
the uses to which they are put. While we need water to survive, we have a
lot of it, and can use it not only for survival but also for such luxuries as
washing our cars and watering our lawns. Diamonds are relatively rare, so
they are only used in very highly valued ways. Hence, diamonds are more
expensive, even though all water is more important. In economic terms, at
the margin, water is applied to lower-valued ends.
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 83
But their thinking this is sort of like: first, there’s this property law,
and it’s all put in place, and no market transactions are happen-
ing—everyone is just waiting for the whole legal structure to be put
in place. And then it’s in place—and now we can finally start trad-
ing back and forth. It certainly is true that you can’t have function-
ing markets without a functioning legal system; that’s true. But it’s
not as though first the legal system is in place, and then on the last
day they finally finish putting the legal system together—then peo-
ple begin their trading. These things arise together. Legal institu-
tions and economic trade arise together in one and the same place,
at one and the same time.
9
See www.usdoj.gov for a description.
84 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
10
Think IBM or Alcoa before the advent of competitors.
11
Ancient Ireland existed in a state of orderly anarchy for centuries. On this,
see Peden (1977, pp. 81–96); Friedman (1989); and Miller (1990).
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 85
12
This is a serious underestimate, since it does not take into account deaths
attributable to a variety of government initiatives. For deaths attributed to
the U.S. Food and Drug Administration, see Rockwell (1999) and Weinert
(1998). For those attributed to socialized medicine, see Barnett and Saliba
(2004, pp. 38–56) and Terrell (2003). On fatalities, and road socialism, see
Block (1979, pp. 209–38; 1996, pp. 195–207).
For more on the ghastliness of governments, not war lords, see Courtois
et al. (1999); Rummel (1992, 1994, 1997); Conquest (1986, 1990).
86 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
SECOND BEST
In Holcombe’s (2004, pp. 333–34) view:
[P]eople with no government—or even with a weak government—
will find themselves taken over and ruled by predatory gangs who
will establish a government over them.
How do we define “weak government?” In any reasonable defi-
nition, those of Switzerland, New Zealand, Singapore, Monaco,
Liechtenstein, and Iceland must be considered “weak.” Yet, they are
all doing quite nicely, thank you, at least relative to other such enti-
ties one could name.
Hong Kong might be considered as an instance on Holcombe’s
side of this particular ledger. China, a government more given to pre-
dation, did take them over, but it is by no means clear that those with
a weak government will find themselves being taken over by a far
worse one. In a sense, there is a real question as to which government
took over which. Did the tiger eat the mouse, or did the mouse
“roar,” and reverse the usual outcome? In the Peter Sellers movie The
Mouse that Roared, a tiny country conquered the mighty U.S. in a war.
Ostensibly, Hong Kong is now a small part of China, but the eco-
nomic system with which Hong Kong has long been associated, cap-
italism, bodes fair to take over the entire country of China, as the lat-
ter slowly throws off its communist shackles.13
On another Chinese front, the government of Taiwan would
hardly be called “weak.” Yet, in comparison with the People’s
Republic of China, this is not an unreasonable characterization. The
implication of Holcombe’s analysis is that the latter would have no
trouble in “taking over” the former. Yet, at least as of November 2004,
this has not happened.
Nor can Iraq’s attempt to take over Kuwait be counted as evi-
dence for Holcombe’s contention. True, there was the intervention to
stop this by an even more powerful robber gang, the U.S., but the
point remains that Kuwait, the “weak” government, was not taken
over by Iraq, the relatively stronger one. As for the U.S., the strongest
government in the world seems to be having an inordinate difficulty
in taking over Iraq, at best a fifth-rate power. A similar analysis per-
tains to the U.S. in its early days. In the eighteenth century, it was far
“weaker” than the U.K., but the latter proved powerless to prevent
the former from leaving its ambit.
13
See Gwartney, Lawson, and Block (1996) and Johnson, Holmes, and
Kirkpatrick (1999).
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 87
PREEMPTIVE STRATEGY
Holcombe (2004, pp. 336–37) offers a strong, even inspiring vision:
libertarian ideas can promote freedom. He also concedes that limited
government is still thuggish and rights violating. He argues for the
latter based on his preemptive strategy: only in this way can we
avoid an even worse government.
There is, however, a tension between these two points. First,
Holcombe inspires us with liberty and freedom, and the absence of
government. Second, he advises us to jettison this ideal, on the
ground that if we do not, we will be in for something far worse.
Let us reason by analogy, and see how Holcombe’s argument
plays out not in the field of government, but, rather, slavery.
Accordingly, we now state the following. Slavery is inevitable.
Periods of nonslavery are either fleeting, or an illusion. If “we” put
ourselves in the hands of relatively kind slave masters, who use
softer whips and engage in such nefarious practices with less fre-
quency, we can stave off crueler, harsher slave masters, who will
surely enslave us if we, head-in-the-sand ostrich-like, refuse to
embrace “nicer” slave masters.
For all I know, there might be some truth, too, in this contention.
Slave masters, after all, bear an uncanny resemblance to govern-
ments. But as a vision for libertarianism, as something to inspire us,
it is difficult to embrace this particular program. Surely, we can do
better than this. Holcombe’s motto seems to be, “Nice government
now, lest worse government later.” Our motto, based on the slave
analogy, would be “Embrace nice slave masters now, lest harsher
ones come along later.” What happened to “millions for defense, not
a penny for tribute?” This would serve us well not only in rejecting
slavery, but also in rejecting government, a slightly different sort of
slavery, at bottom.
Holcombe (2004, p. 337) seems to have almost a fetish against
“outside predators,” but this is unconvincing. The source of the pre-
dation is surely irrelevant. Why is he so sure that if “we” set up a
government, it will be better than the one imposed on us by “them?”
Sometimes, surely, the homegrown version of tyranny is worse than
the one imposed upon us by foreigners. Certainly, it would not be a
logical contradiction to suppose this to be the case. For example, it
was the outsiders, the British, who eradicated the practices of suttee
and thuggee in India.14 The local maharajah governments supported
14
See sify.com; fact-index.com; and bartleby.com for a discussion of these
issues.
88 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
SCOPE OF LIBERTARIANISM
In Holcombe’s (2004, p. 337) view:
A libertarian analysis of government must go beyond the issue of
whether government should exist. Some governments are more lib-
ertarian that others, and it is worth studying how government insti-
tutions can be designed to minimize their negative impact on lib-
erty.
Yes, yes, of course. No one claims that libertarian theory should
be confined to the anarchist vs. minarchist issue, and Gwartney et al.
(1996) and Johnson et al. (1999) have made some strides in measur-
ing the level of predation of a given government. But this is disingen-
uous on Holcombe’s part. He is doing far more, and worse, than sug-
gesting that there is more to libertarianism than this one issue: He is
offering a counsel of despair. Let us give up our hopes for full liberty,
for we might worsen our position if we strive for it. As an empirical
issue, Holcombe raises interesting points, but as a libertarian analy-
sis, it is sorely wanting. It attacks full freedom merely as a strategy,
not as an ideal.
CONCLUSION
Holcombe (2004, p. 337) concludes on the following note:
15
At least for those remaining who were not killed by sword or disease. See
Diamond (1999).
16
This is not an argument for paternalistic, imperialistic adventurism. For
the libertarian, these forays were unjust even if they had beneficial utilitar-
ian effects. I am only trying to correct Holcombe’s bias in favor of home
grown tyrants vis-à-vis foreign ones. Sometimes, the latter are better.
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 89
History has shown not only that anarchy does not survive, but also
that some governments are better than others. Therein lies the lib-
ertarian argument for a limited government.
We cannot let this pass without comment. First of all, Holcombe
is on record with the claim that government is inevitable. But if this
is so, “history” cannot show any such thing. All history can do is
record the past. At best, history can demonstrate that so far we have
never had anarchy: We have always suffered under state rule.
Consider the analogous claim: “Sunrises are inevitable, and history
has shown this to be the case.” This, too, is a fallacy. If sunrises are
inevitable, then history can show only that so far the sun has risen
every day, but history cannot demonstrate the inevitability of this
process. In contrast, it is inevitable that 2 + 2 = 4, that man acts, and
that voluntary trade benefits both parties in the ex ante sense17; that
is, it is a logical contradiction to suppose the opposite of these asser-
tions, and they also explain events in the real world. But here, history
can only illustrate that they are true. It cannot “show” any such thing.
Second, strictly speaking, there is and there can be no “libertar-
ian argument for a limited government.”18 Limited government is
simply incompatible with the libertarian nonaggression axiom. In
order to more clearly see this, substitute “crime” for “government.”
This should raise no objection from Holcombe, who concedes that
even the best of limited governments are criminal organizations, e.g.,
“predators.” Is this something the true libertarian can accommodate,
while still fully adhering to his principles? No, no, no. The libertar-
ian, if he is to be logically consistent, must urge zero crime, not a
small amount of it. Any crime is anathema for the libertarian. Any
government, no matter how “nice,” must therefore also be rejected
by the libertarian.
This does not mean that 100 percent of the GDP should be
devoted to the eradication of private crime and we all die of starva-
tion. In like manner, the optimal amount of government for the lib-
ertarian—whether of the local “nice” variety or the nasty foreign
17
See Hoppe (1992), Selgin (1988, pp. 19–58), and Rothbard (1973b, pp.
311–39).
18
I do not deny that there is such a thing as a limited-government libertar-
ian, or libertarian minarchism. It is in the same vein that I do not deny that
if a person takes libertarian positions on all but one issue (say, drugs alone,
or abortion alone, or rent control alone), that he can properly be character-
ized as a libertarian. I would say of all these people that they take libertarian
positions on all issues except for the one where they deviate from the nonag-
gression axiom.
90 — JOURNAL OF LIBERTARIAN STUDIES 19, NO. 3 (SUMMER 2005)
REFERENCES
Anderson, Terry, and P.J. Hill. 1979. “An American Experiment in Anarcho-
Capitalism: The Not So Wild, Wild West.” Journal of Libertarian Studies 3.
19
See, e.g., Wilson (1980) and Pinker (1994, 1997, 2002).
GOVERNMENTAL INEVITABILITY: REPLY TO HOLCOMBE — 91