Grigory Bazhenov, an economist better known to the wider community as the initiator of the project No to Excise (by the way, an interesting example of a fairly competent public campaign, do join), has published an article on the insolvency of the ancap concept.

The language of the article is not the simplest, but as I understood, after scrolling through Grigory’s channel (also recommended, by the way), he is a mainstream economist who believes that non-mainstream things should be communicated in the language of the mainstream and based upon it, otherwise one remains on the sidelines. For an economist, this is logical. For a popularizer, this is walking on thin ice.

But let’s return to the article on ancap. Grigory summarizes that the insolvency of the ancap concept lies in the fact that “anarcho-capitalism proceeds from an economic interpretation of the concepts of competition and monopoly, but at the same time transfers these concepts into spheres where they are simply inappropriate”. I am very sorry, but this is a fight in the wrong place.

The doctrine of anarcho-capitalism does not imply free competition between organizations exercising aggressive violence for the right to rob those who are less efficient in this area. This is closer to the doctrine of extraterritorial insurance rackets advocated by Oleg Tarakanov, which he considers an intermediate option between minarchism and ancap.

Anarcho-capitalism is primarily a legal, not an economic, doctrine, and it asserts that no one has the right to rob, and that any imposed contracts are null and void, regardless of the status of the person imposing the contract.

This legal doctrine is merely supported by economic theory, as it proves that purely economically, a free market is better than an unfree one from the perspective of economic agents. And then Mises says that this conclusion is enough for a smart person to choose the free market, and Rothbard adds that even if it were proven that a certain form of unfreedom were economically more profitable, “proper guys” would still be for freedom. One can treat Rothbard as a freak for such bias, but fortunately, thanks to Mises, this is indeed immaterial.

So ancap is simply a critical hum, whether addressed to a minarchist state structure or to a world of competing insurance rackets: not bad, it says, but it could be better.