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A Review of Chaos Theory by Rob
Imagine
a world of private laws, where laws are written by legal experts instead
of inept politicians, and are voluntarily and explicitly agreed to in
advance (including the penalties for breaking the law) by each
individual, instead of imposed on everyone without notice and against
their will. In this world,
victims of crime are immediately indemnified for their loss.
People have a strong financial incentive not to aggress against
non-aggressors. Competing arbitration companies ensure that justice is
administered fairly. Jails
compete for the business of violent criminals.
And organized crime (both by the State and the mafia) and police
brutality are a relic of the past. Now
imagine a world where insurance companies would indemnify policyholders
for losses caused by foreign aggressors.
Seeking to maximize their profits, they would also provide the
optimal amount of defense to protect the lives and property that they
insured and reduce the risk of attack.
They would purchase military hardware and equipment at a fraction
of what governments pay, greatly reducing the cost of protection.
Multinational defense agencies would loan out high-tech weapons
to their franchises in areas under imminent threat of attack, further
reducing the cost of protection. Defense
agencies would advertise their capabilities instead of trying to
keep them secret. And the
risk of being attacked would be greatly reduced since foreigners
wouldn’t feel threatened (defense agencies wouldn’t have offensive
weapons because using them wouldn’t be profitable).
Murphy
explains the crucial role that competition and the profit/loss test play
in providing quality, low-cost services: “It took Ludwig von Mises to
explain, in a 1920 paper, the true flaw with socialism: Without
market prices for the means of production, government planners cannot
engage in economic calculation, and so literally have no idea if
they are using society’s resources efficiently.
I
have only two criticisms of the book.
First, the many endnotes are located at the end of each essay
instead of at the bottom of each page, so flipping back and forth is a
chore. Second, I had been
looking forward to seeing the illustrations by Robert Vroman, but there
are just two of them, only one of which is Vromanesque
(scroll down). Despite
these minor quibbles, I highly recommend this book, especially if you’re
a libertarian who hasn’t yet become a market anarchist because you
think the State is the only entity that can provide justice and defense.
Murphy makes dozens of brilliant observations and really thinks
outside the box. Reading
this book was like taking a mind-altering drug.
The book costs just $6 (plus $2 shipping & handling) and can
be ordered here.
In conclusion, as Murphy writes: “It is foolish and reckless to entrust the State with the protection of civilian lives and property.” Read the book and you’ll understand why.
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