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What is Anarcho Capitalism?

Last updated on January 2, 2021

What is Anarcho Capitalism?

Until recently, I had never heard of anarcho capitalism. 

Weren’t anarchists angry teenagers who wore black and moshed at concerts? 

Apparently not…

It all started at Burning Man in 2018 when I visited a camp called Decentral. As the name suggests, the camp promoted all-things-decentralization.

I was laying on the ground with a wet towel over my face (trying to cool off) when a flustered-looking man in a fur vest takes the stage.

He’s smoking a cigarette and starts to ramble about how corrupt the Federal Reserve is, how American politics is a distraction to keep us fighting, and why everyone should buy cryptocurrency. 

I liked him 🙂

That said, I heard him say “anarcho capitalism” a few times…


(The speaker was Jeff Berwick, bitcoin investor and founder of The Dollar Vigilante. He also hosts an annual conference called Anarchapulco that I attended in 2019 and 2020 after seeing his speech at BM!)

What is Anarcho Capitalism?

Anarcho capitalism is a political ideology, which is a theory for how a population of people should be organized. Other political ideologies for context: 

Anarchism Individuals control themselves, there is no state. 
Socialism Individuals pool earnings to give to the state who will redistribute to the people. 
Communism Individuals surrender rights and the state provides their basic needs. 
Democracy Individuals elect other individuals to represent them in the state.
Fascism  Individuals are ruled by a single person.
Corporatism Individuals and the state are controlled by large interest groups.
Populism Individuals are controlled by “elite” individuals who influence the state in their favor. 
Capitalism Individuals own and operate industry and live on wages earned by job/business.

Which one represents America?

I hope you didn’t say democracy or capitalism!

If you did, then you’re only repeating what you’ve been told, instead of looking around with your own eyes.

Democracy is dead, less than half of all Americans even vote.

Capitalism is dead, too. As soon as our politicians started accepting bribes from corporations in exchange for policy favors, the game was over.

The United States practices corporatism. Our “elected” officials do not represent or fight for the people, but instead work for special interest groups and corporations who fund their livelihood.

Related Reading: Why are Liberals so Stupid?

Anarcho Capitalism Defined

Let’s break the term down into in parts.

“An” is from the Greek word for without, and “arch” stands for the Greek word ruler = Without Ruler.

Capitalism, as mentioned above, is private ownership and profit from industry. Ergo, anarcho capitalism is capitalism without rulers (government intervention).

What do I mean by government intervention?

For example, everyone knows that Amazon doesn’t pay taxes and we are mad at the evil capitalist Jeff Bezos for not paying his share.

But who allows this? The government!

Our elected officials work for corporations, not for the public. Just because they say capitalism and democracy exists in America, does not make it true.

If Amazon operated in a free market, without special favors, they would pay taxes, face competition, operate with lower margins, be held accountable, and enjoy all benefits of what is FAIR 🙂

Related Reading: Why Shareholders Gave Up Their Voting Rights

Why You’ve Never Heard of Anarcho Capitalism

Despite the horror that is US politics, Americans don’t demand change.

They don’t demand change because the media, who also bow to corporations (their advertisers), don’t tell them what’s going on. Can you imagine if Rachel Maddow did a segment on the lobbying firms Procter & Gamble hired to bribe politicians to shut down competitors with phony regulation, approve various mergers, and pass tax policies that benefit P&G?

Procter & Gamble, the parent company to thousands of household brands, spends hundreds of millions on advertising with MSNBC! If Rachel did a segment like that, they would pull that budget immediately.

So Rachel, and all the other talking heads, focus our attention on puppet politicians like Trump and Pelosi, instead of informing us of the failing system that is Washington DC.

Settlers came to America to escape domineering Kings and Queens. They understood that society worked best when the “rulers” were kept at bay and the individual was allowed to thrive (i.e., anarcho capitalism).

The problem is that once a government gets big enough, they control what information the public has access to (public schools, cable TV, New York Times, etc.).

Americans are told what to think instead of how to think.

Related Reading: Why is Weed Still Illegal?

The Difference Between Corporatism and Capitalism

Have you ever been in a political disagreement with someone who can only repeat headlines?

It is a frustrating experience.

I came across a video (below) where the author condescendingly debunks anarcho capitalism. The problem is he doesn’t know what anarcho capitalism is.

For example, he says: There’s nothing particularly revolutionary about smashing the state if it just means handing more power over to corporations.

He’s saying that we shouldn’t get rid of the government because that power will simply go to corporations.

But this is wrong because a corporation is only a legal entity that the government permits to exist in the eyes of the law. Corporations cannot exist without the government and are usually extensions of the government! 

In other words, if we remove or downsize the role of government, that includes downsizing or removing the concept of “corporation.”

Business: Has the power to sell goods and services to customers, i.e., a local ice cream store, a hair salon or accountant. 

Corporation: In the business of securing federal contracts, i.e., hiring lobbyists and teams of lawyers to win over politicians.

The narrator in the video mentions the BP oil spill from 2010.

This was a horrible accident that no company should have survived. In a free market, customers would have turned their backs on BP and eventually they would have gone out of business.

But BP’s major customer is the US Government and our crooked politicians don’t give a damn about the environment which is why they resumed granting BP federal contracts just 18 months later.

Remember all those Wells Fargo scandals?

Not one executive went to jail. Amazon still doesn’t pay taxes. BP is still winning government grants.

Capitalism is a system where the company must serve the customer or else go out of business. Corporatism is a system where the corporation is fine to do whatever the fuck they want as long as US Congressmen get their piece of the pie.

Related Reading: How to Be a Conscious Investor

The Principles of Anarcho Capitalism

Here are the major principles and beliefs of anarcho capitalism:

Non-Aggression Principle

The Non-Aggression Principle recognizes that aggression between any two humans is inherently and morally wrong. For example, let’s say I stop paying taxes. I’m hurting no one and taking from no one (let’s say I live in the woods). As of today, the police are legally allowed to break into my home, use violence against me and put me in a cell forever. Anarcho capitalists believe this is immoral and reject all violence or force against another human. The only exception is when a life is being threatened.

Capitalism Produces Quality

Private companies create better products and services than the government. Whether it’s voting, the IRS, the post office, construction projects, or nutritional advice, the government fails at execution. Imagine if Google took over the DMV. Or what if Silicon Valley were allowed to fix our immigration process? Do you think the guys at Venmo could come up with a better way for welfare recipients to get their money?

Capitalism Is Efficient

A private enterprise should fail if their product sucks. If markets were free, that would be the case. For example, in New York City, yellow cabs are still around because the government is protecting them. Yellow cab drivers are awful, their cars aren’t safe, they smell, the drivers are rude, they never know where they are going and take up space on the road. If the government weren’t propping up a dying industry, yellow cabs would die a natural death and Uber, Lyft, etc. would take over and the city would be better for it. 

Private Enterprises Do NOT Get Favors

Did we as the public approve of government spending our money to bail out public companies to the tune of trillions of dollars?  We don’t. Notice our elected officials don’t hold a vote to see if I approve of giving American Express $3 billion last year. Anarcho capitalists believe that companies should operate independently of the government. Period.

Government Intervention is Harmful

The Federal Reserve prevents the markets from regulating themselves. As a result of Quantitative Easing, income inequality is out of control in the US (printing money doesn’t benefit everyone). Anarcho capitalists believe that wealth should be earned through voluntary means of commerce. Not by using a printing press.

Taxation is Theft 

Anarcho capitalists reject the notion of being forced to give money to fund initiatives or programs we don’t support. For example, we want healthcare and better roads, but we don’t want to go to war. The concept of paying taxes is arbitrary when you consider that politicians don’t even represent the people, only corporations. We will go to war as a country if the Military Industrial Complex wants us to go to war. No questions asked.  

Natural Human Rights are Life, Liberty and Property

Every human soul is born a free spirit. Many of us are willing to give up some freedoms in exchange for a functioning society. But how many Americans are aware of the freedoms they’ve given up? Most of us are enslaved by a job, mortgage, student loans, lack of money, power, greed, etc. Anarcho capitalists believe that every human life is a creative, intelligent and free spirit. This is what our founding fathers fought for. Freedom is being taken away from us and most Americans are so brainwashed they willingly surrender.

Related Reading: What is Spiritual Healing?


Anarcho capitalists believe that no one has the right to rule you. 

What you acquire for yourself through voluntary means, whether from your own efforts, or combined with the efforts of others (through voluntary means) is your property and you have the exclusive right to decide what is done with it. 

The political ideology is not a push towards complete anarchy, but it is an excellent start to a conversation our country desperately needs to have.

Less government = more freedom.

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