This is the discussion thread for iCEBREAKER and I regarding the minimal state vs. market anarchy.
This promises to be an interesting debate, as iCEBREAKER (and Nozick) contend that a minimal state will arise out of market anarchy, even without violating the Non-aggression principle.
For those wishing to join the debate, or just follow along in the books as we argue points, here are the books (ePub format):
Anarchy, State, and Utopia, by Robert NozickThe Production of Security, by Gustave de Molinari (a much shorter work)
The freeware program
Calibre can be used to convert the files to your preferred format, and comes with reader software capable of reading either one without conversion.
Edit: I'll probably be drawing from Rothbard's critique of the book, as well, you may want to grab that, too:
Robert Nozick and the Immaculate Conception of the State, by Murray Rothbard
As of this writing, I am approximately 1/3 of the way through the book, and time and again, I see a glaring error in Nozick's reasoning. He appears to have never heard of arbitration. Arbitration, for those who are not familiar, is a private court system. An arbitrator acts as a judge between the two parties involved in the case. The arbitrator is not in the employ of either party, and so is neutral. Both parties agree to trust and abide by the judgment of the arbitrator, and if both parties cannot agree, another arbitrator is selected. Thus, arbitrators who are trusted and give fair judgments get more business, and arbitrators who are not trusted get less.
To be fair, both books focus primarily on the industry of Security, defense against threats both internal and external - in a State, provided by the police and military, respectively, in a market anarchy provided by a defense agency - yet it is through the industry of Justice which Nozick's minimal State acquires it's power. It claims the right to punish (his words, not mine) any who use justice methods not approved by it. So here, then, is the flaw - the violation of non-aggression - the monopolization of justice by a defense firm.
A second flaw is that he assumes justice is better served by a larger defense firm. In truth, justice is an entirely different matter, and the quality of the justice that you receive is not limited by the size of your defense firm, but rather the quality of the arbitrator selected. To be certain, defense, especially from external threats, is better provided by larger firms, but not so much so that smaller firms could not provide adequate defense, especially if aided by the larger ones in times of need. For internal defense - police work, essentially - a smaller firm might even be
better suited. But defense is not justice, and it's foolish to conflate the two.
Much of Nozick's cases rest on the interaction between "independents" and clients of the dominant protection agency. This is where his third flaw comes in: The assumption that all interactions between one agency and another, or an agency and those "independents" would be settled violently. This is what happens when you cast a defense agency in the role of adjudicator. This, too, is a simple problem to resolve with arbitration. Agencies would have, between each other, agreements to arbitrate disputes when the client of one agency accuses the client of another of violating his or her rights. The client, when they signed up for the defense service, would have, as part of the contract, agreed to abide by this agreement, and therefore, any disputes between customers of two agencies would be solved via arbitration.
The independents pose a slightly different problem, for they have no agency with which they have contracted for their defense. They are, in effect, their
own agency. As such, they would need to contract with the various other agencies to arbitrate any disputes which might occur. You might assume - correctly - that this would be a rather arduous task, especially if there are a large number of agencies with which to contract. Thankfully, a solution to this problem also presents itself: the
general submission to arbitration. This is an agreement, directly with an arbitrator, that any disputes which arise will be dealt with via arbitration. This connects the "independent" to the rest of the agencies' arbitration agreements, without the tedious task of contracting with all the agencies. The independent simply chooses a few arbitrators whose judgment he trusts, signs a GSA with them, and goes on about his life. It would be even simpler if the arbitrators, amongst themselves, all agreed to honor one another's GSAs.
There is a second sort of independent, however - those who have
not signed a GSA. These people, along with those who have broken their agreements to arbitrate, are
outlaws, in the original, literal sense of the word: neither bound nor protected by the law. These people would be trusted very little, for they are not obligated to appear for arbitration in the event of an accusation. By the same token, however, they have no recourse to require others to appear for arbitration, for they've made no agreements to that effect, and nobody has made any agreements with them. They are, in the truest sense, on their own. This is, as you might imagine, not a pleasant state for most. Given that they cannot be trusted to appear for arbitration in the event of a dispute, few would deal with them, and those that did would likely not make long-term deals with them - strictly up-front payments.
This network of arbitration agreements, backed up with the prospect of outlawry for refusal to participate, not only keeps the State at bay by separating the industries of justice and security, but provides incentive to keep society civil, without resorting to the threat of violence.