The Dangers of a Purely Voluntary Economy Without Mandatory Transactions
When the term 'voluntary economy' is mentioned, one might instantly think of a privilege that is somewhat out of reach. However, let's examine the reality of such an economic model, where every transaction is entirely voluntary and free from coercion, threat, or deceit. The potential consequences can be stark.
The Implications of a Voluntary Economy
A purely voluntary economy raises numerous concerns, especially when it comes to basic needs. For instance, imagine driving at night with an empty gas tank, unsure whether the next gas station will be open to you. This stress becomes a constant worry when you consider the idea of a world where such transactions are decided based on personal privilege or prejudice rather than necessity.
Ranking Transactions and Access to Basic Needs
Transactions would be ranked in terms of their essentiality to survival and the degree of control individuals have over the situations they find themselves in. For example, access to food, medical care, and shelter in inclement weather would be critical, but these elements could become inaccessible or unfairly distributed based on personal characteristics or economic conditions.
The Role of Government in Protecting Property Rights
Without a governing body that both defines and protects property rights, a voluntary economy would struggle to function. A simple example is the ownership of the air above one's land. In theory, this concept appears straightforward, but in practice, it becomes controversial. Basic questions such as who owns the air above a piece of land could lead to significant disputes.
The Necessity of Rules and Coercion
The late Ayn Rand observed that anarchists, by necessity, become collectivists. This is because without a system of rules and regulations, basic transactions would be subject to arbitrary decisions. For instance, if someone wanted to sell apples from a tree they planted, the apples should be available for the taking unless there is a formal arrangement in place. However, if the seller has invested significant effort into the tree and claims it as their property, the ability to freely take it without compensation is problematic.
The Consequences of Economic Power Imbalances
In a voluntary economy, economic power imbalances could lead to severe outcomes. For example, in a scenario where a seller has a unique cure for a deadly disease, they could exploit their position by claiming no coercion, no theft, and no fraud. This situation could lead to disparities where those who possess essential goods or services can effectively control or dominate others if no formal mechanism exists to protect against such outcomes.
The Historical Example of Pol Pot's Failed Communist Experiment
The history of Pol Pot's attempt to introduce full communism serves as a stark reminder of what can go wrong without proper governance. In such a model, ensuring fair distribution of resources and preventing exploitation becomes challenging. The lack of a regulatory body led to catastrophic failures, highlighting the importance of established systems of rules and enforcement.
Conclusion
A purely voluntary economy presents significant risks and is unlikely to function effectively without the protection and enforcement of government rules and regulations. The protection of property rights, the fair distribution of essential resources, and the prevention of exploitation are critical components that need to be addressed.