The tragedy of property and the retort of rationality, or: what’s the difference between anarchism and libertarianism?
June 13th, 2009 at 22:20 (English, Politics)
This is a translation of my previous essay, “Harmleikur eignarréttarins og andsvar skynseminnar” with slight modifications and clarifications. This translation was originally published on the p2p-research mailing list.
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I have frequently been asked what the difference is between libertarianism and anarchism, in light of the fact that anarchists have adopted the moral that libertarians have claimed ownership of, that individual freedom is only limited by the equal freedom of others. Because of this, both libertarians and anarchists reject the authority of others, especially the authority of governments.
“The greatest advances of civilization, whether in architecture or painting, in science and literature, in industry or agriculture, have never come from centralized government” - Milton Friedman
So what is the difference? The answer is simple. There is only one difference between anarchism and that which has been called libertarianism, but that single difference has a number of very important consequences.
The difference is this: Anarchists do not recognize the concept of property.
Anarchism is first and foremost about freedom, but anarchists do not accept that their freedom is limited by physical or imaginary property. Therefore it may be more correct to speak of propertarianism than liberalism.
The consequences start to become apparent when we appreciate the need to protect property, since the concept of property cannot be assumed to be universally accepted, simply by virtue of the existence of anarchists. The protection of property can be done in a number of ways. The threat of violence and whichever form of making good on that threat was common, but another method is the creation of a legislation or agreement which grants some organization the authority to punish in some way for infringement of property rights
“Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.” - Adam Smith, The Wealth of Nations (1776)
That propertarians take care of their own property rights by way of violence or other means is the method many of the more liberal propertarians have advocated, and the most radical amongst them have styled themselves anarcho-capitalists. However, the managing of ones own affairs is an uncommon approach, seeing as how few wish to shit where they eat, let alone murder where they live.
It is simpler for the conscience to let others take care of the violence. For this and many other reasons, most propertarians accept that although an authorative government is a bad thing, it is important to have laws to maintain property rights.
“Corruption is government intrusion into market efficiencies in the form of regulations.” - Milton Friedman
Hence the legislative authority, the first part of government. They accept that although it goes against their ideals, there must be a government, but then it shall be a minimal government. The minimal government should not offer social services, as this would intrude on market efficiencies. Rather, it should only maintain property rights on everything, whether it is objects, resources or ideas, and enforce those rights with punishments of some kind.
Now the propertarians are faced with a liberal dilemma: how do we ensure fairness? Can we guarantee the liberty of those who infringe on our property rights? Well, we can’t, but we may be able to ensure justice by way of some arbitrative authority which use the rules to punish everybody equally.
“The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges, to beg in the streets, and to steal bread.” - Anatole France, The Red Lily (1894)
And now that the punishment has been delved out it, action must be taken to enforce it. There must also be some way to bring infringers – criminals – to justice. Hence the executive authority, with its ability to execute all of the above, including the criminals if need be.
Let’s remember that here we speak only of the most pure form of libertarianism: in a perfect libert… – sorry, in a perfect propertarian society the government would neither operate schools nor hospitals, these would be privately owned. The government would not provide social benefits or physical security, as all of these functions would be functions of the market. The only purpose of government is to enforce property rights. Anything else is simply communism, isn’t it?
“Once wide coercive powers are given to governmental agencies for particular purposes, such powers cannot be effectively controlled by democratic assemblies.” - Friedrich von Hayek, The Constitution of Liberty (1960)
This tiny detail, property, is enough to have the propertarian unravel all her beliefs and build around herself a powerful system of coercion which is very easy to use for oligarchical purposes. Taxation, trade barriers and an unfree market are natural consequences of having such power hanging over us. But this they accept anyway, because in the world of the propertarians, property is more important than freedom.
“Property is theft.” - Pierre-Joseph Proudhon, What is Property? Or, an Inquiry into the Principle of Right and of Government (1840)
Unfortunately, very few are anarchists. Very few people have considered property in this light and very few have considered the consequences of eliminating the concept of property. So it may not be unreasonable to consider some of the implications of doing so.
Imagine owning nothing. This is different from not having anything: when you sit in a cinema you do not own the seat you are sitting in, but yet you have it. You are using it and nobody is likely to take it from you. If anybody were likely to do so it would be the owner of the cinema, which can do simply because it is his property.
Laws do differentiate between having and owning. When discussing resource rights there is an understandable difference between usage rights and property rights. Usage rights can be temporary or more permanent, and they don’t necessarily need protecting with laws. Few people would consider using another persons toothbrush or bed without permission.
What if a house stands vacant? If property exists then the house shall stand vacant if that is the will of the owner; it is his prerogative as owner to have the house fall into disrepair. But if no property rights exist, then it is clear that usage rights do not apply if the house is not being used, so another could use, lest the resource be squandered.
“The idea of property, or permanent empire, in those things which ought to be applied to our personal use, and still more in the produce of our industry, unavoidably suggests the idea of some species of law or practice by which it is guaranteed. Without this, property could not exist.” - William Godwin, An Enquiry Concerning Political Justice and its Influence on Morals and Happiness (1793)
Keep in mind that this does not contradict the right to privacy. If you are using a room it is not socially accepted that another barge in and begin using it; rooms are rival, and rivalry transcends property. Dropping the right to property would not mean that people could not have private possessions either: people will always respect one another’s privacy to a sensible degree determined by the social context. Laws are only needed to enforce injustice.
In economics things are considered to be either scarce or abundant, meaning that with sensible use of these things can be depleted, or else there will be enough to fulfill any sensible demand for the resource. An example of a scarce object is the Eiffel tower. There is only one Eiffel tower, and there never be more than one Eiffel tower, because copies will only be copies – what makes the Eiffel tower what it is is not its shape or chemical composition, but rather its cultural significance. However, there is an abundance of oxygen on Earth, and it would be unreasonable to intend to deplete it.
On the other hand there are rival goods, and social goods. This refers to whether or not the usage of one individual of the resource precludes the use of others of the same resource. A carrot used by one man cannot be used by another. A chair cannot be used, under normal circumstances, by more than one at a time. However many can sit in the same cinema, and many can use the same garden.
(It’s worth noting that most economists don’t see any difference between rivalry and scarcity, which may explain some of their mistakes.)
“Since neither property nor capital produces anything when not fertilized by labor–that means the power and the right to live by exploiting the works of someone else, the right to exploit the work of those who possess neither property nor capital and who thus are forced to sell their productive power to the lucky owners of both.” - Michael Bakunin, Selected Writings
Labor is of course on of those things for which there is both competition and rivalry: each individual only has a fixed number of hours in the day, and the propertarian model has established a culture of the owners of the means of production having others work on their behalf in exchange for a small portion of the produce, and this is generally not provided in the form of the produce itself, but rather in the form of a currency.
In light of recent events it is dilligent to ask of currency: is it scarce? Yes. Is it rival? Yes. Need this be the case?
This last question is important not least because it is so rarely asked. The monetary system has been constructed around the belief that all things are scarce and that all things are rival. Because of this, the monetary system is incapable of properly estimating the value of things that are abundant or social.
“Money is a sign of poverty.” - Iain M. Banks, The State of the Art (1989)
The concept of property has been used to justify scarcity for many centuries. Many centuries ago, in England, many large forests were considered to be commons – a concept all but exterminated from our culture – areas which all had equal usage rights to and nobody had formal property rights for. At some point the lords realized that these commons were quite valuable, and suddenly realized that which has come to be known as the tragedy of the commons.
The farmers made use of the forests, cutting small branches off the trees in the autumn to use as firewood during the winter. This helped the trees conserve energy during the winter months and start growing earlier in the spring, and the farmers had enough to keep them warm. When the lords suddenly realized that this was a scarce resource, despite this having been the way of life since time immemorial, they had no other choice than to demand that farmers pay for the right to collect these branches.
The farmers, of course, had to pay, or else not have firewood. The use of the forests did not change. Property did not solve a problem that didn’t exist to begin with.
“No complaint…is more common than that of a scarcity of money.” - Adam Smith, The Wealth of Nations (1776)
Money as such are not as large a problem as the way people think about money. The properties of money come from the needs that property – and the power structure that maintains property – has created to maintain scarcity.
In the last century money has been created out of nothing. They are created when banks lend each other money. This is a type of centralization, enacted to ensure that only a limited amount of money exists. A central bank, the regulator of the currency, decides how much of the currency exists at any given time. Most people do not have freedom to create money.
The banks that have the right to create money have, just as the owners who oppress the workers, used their situation to increase their property value by enacting usury.
“If he has exacted usury Or taken increase — Shall he then live? He shall not live! If he has done any of these abominations, He shall surely die; His blood shall be upon him.” - Biblían, Ezekiel 18:13 (King James version)
Usury, or intrest, creates an interesting situation in the monetary system. There is a constant demand for more money than has been created. This, along with the centralization of the means of production of money, create a game, which has a few rules:
Everybody must participate, they cannot quit, they cannot win, they cannot break even. The goal of the game is to be the last person to loose. The best strategy? Own more. Avoid bankruptcy. Lie, cheat, decieve. Drive others to bankruptcy. The worse you are as a person, the better you are at the game.
So what is the solution? How do we change the game?
Simple: We stop assuming that everything is scarce, and that all things are rival. This tiny change unravels the current failures in the monetary system. Then we can build a new monetary system and a new market economy which does not rely on the concept of property.
First, we stop accepting centralization of the means of production, and allow everybody to create credit, the value of which is determined by their merit. By using computers we can make this fast, simple and safe.
“Abundant cheap credit would drastically alter the balance of power between capital and labor, and returns on labor would replace returns on capital as the dominant form of economic activity.” - Kevin Carson, Mutualist Political Economy
The monetary system would be constructed thus: business transactions between individuals, where items of value are exchanged – irrespective of ownership thereof – based on statements of gratitude from the “buyer” to the “seller”. The computer system can collate the enumerated gratitude at a moment’s notice, throughout the entire society. With strong encryption these statements will be nigh impossible to forge.
What’s more, the contradictory nature of capitalism gets put to good use. The capitalist model assumes that the only motivation for human activity is profit, while at the same time neoliberal economics point out that in a perfect free market competition will eliminate profit. This would mean, in the case of loans, that due to the availability of cheap credit, no interest would need to be payed, nor loan fees, any more than you pay the attendant at the supermarket a handling fee for accepting your money.
The technological basis for this exists, but they are outside the scope of this short rant. The point is this:
Property is weaker now than often before, as it goes against the morality of those who have nothing.
The monetary system is weak now, because it was designed around assumptions that no longer apply.
Centralization is not the future, scarcity is not the future, property is not the future. Anarchism is the future: freedom for all to live in equality and cooperation.





