section_path: Philosophy/Anarcho-capitalist theory
section_name: Anarcho-capitalist theory
paragraph_text: Anarcho-capitalist theory
  
  Classical liberalism advocates free trade under the rule of law. Anarcho-capitalism goes one step further, with law enforcement and the courts being provided by private companies. Various theorists have espoused legal philosophies similar to anarcho-capitalism. One of the first liberals to discuss the possibility of privatizing the protection of individual liberty and property was France's Jakob Mauvillon in the 18th century. Later in the 1840s, Julius Faucher and Gustave de Molinari advocated the same. In his essay The Production of Security, Molinari argued: "No government should have the right to prevent another government from going into competition with it, or to require consumers of security to come exclusively to it for this commodity". Molinari and this new type of anti-state liberal grounded their reasoning on liberal ideals and classical economics. Historian and libertarian Ralph Raico argued that what these liberal philosophers "had come up with was a form of individualist anarchism, or, as it would be called today, anarcho-capitalism or market anarchism". Unlike the liberalism of Locke, which saw the state as evolving from society, the anti-state liberals saw a fundamental conflict between the voluntary interactions of people, i.e. society, and the institutions of force, i.e. the state. This society versus state idea was expressed in various ways: natural society vs artificial society, liberty vs authority, society of contract vs society of authority and industrial society vs militant society, to name a few. The anti-state liberal tradition in Europe and the United States continued after Molinari in the early writings of Herbert Spencer and thinkers such as Paul Émile de Puydt and Auberon Herbert. However, the first person to use the term anarcho-capitalism was Murray Rothbard. In the mid-20th century, Rothbard synthesized elements from the Austrian School of economics, classical liberalism and 19th-century American individualist anarchists Lysander Spooner and Benjamin Tucker (while rejecting their labour theory of value and the norms they derived from it). Anarcho-capitalism advocates the elimination of the state in favour of individual sovereignty, private property and free markets. Anarcho-capitalists believe that in the absence of statute (law by decree or legislation), society would improve itself through the discipline of the free market (or what its proponents describe as a " voluntary society ").
  
  In a theoretical anarcho-capitalist society, law enforcement, courts and all other security services would be operated by privately funded competitors rather than centrally through taxation. Money and other goods and services would be privately and competitively provided in an open market. Anarcho-capitalists say personal and economic activities under anarcho-capitalism would be regulated by victim-based dispute resolution organizations under tort and contract law rather than by statute through centrally determined punishment under what they describe as "political monopolies". A Rothbardian anarcho-capitalist society would operate under a mutually agreed-upon libertarian "legal code which would be generally accepted, and which the courts would pledge themselves to follow". Although enforcement methods vary, this pact would recognize self-ownership and the non-aggression principle (NAP).