Man, Economy, and Liberty: Essays in Honor of Murray N. by Murray N. Rothbard, Walter Block, Llewellyn H. Rockwell Jr.

By Murray N. Rothbard, Walter Block, Llewellyn H. Rockwell Jr.

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Third, because of the second point, consumers will become free riders. There is here a prisoner's setting in that each person who benefits from X has the option to pay or not pay for it, the best outcome for each individual being where he does not pay and all others pay. However, behaving in a manner to bring this outcome about is said to end with no one paying for the good. The way out is to opt for state-imposed taxation. Assuming everyone benefits from good X, and would end up paying a dollar tax equal to or less than the marginal benefit of the good, then it is better to have state-imposed taxation and X than to be without taxation and not have X.

Stated differently, contrast the unproved PD and TC justification of the State that makes men better off with Rothbard's attempts to prove that the State makes men worse off. In Power and Market, Rothbard provides a framework in which a long list of activities of the State are categorized and analyzed. A major conclusion of the analysis is that the State decreases social welfare. The reasoning is as follows: One, the State uses coercion. 5 Three, one can not get more utility from doing something he wouldn't be doing than doing something he would want to do.

To their credit, the proponents of the PD and TC justifications have pointed out that game-playing and transaction costs exist, but this is not enough to justify the State. Additionally, they im- Roger A. , protection (of rights), production (of public goods), and wealth maximization—are greater than the costs of coercion. First, the agreement spoken of has never been witnessed. Second, telling a story where the benefits of the byproducts of coercion appear to be greater than the costs of coercion is not the same as proving that they are.

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