Writes Ayn Rand on the nature of anarchy as a political form of organization:
“…a society without an organized government would be at the mercy of the first criminal who came along and who would precipitate it into the chaos of gang warfare. But the possibility of human immorality is not the only objection to anarchy: even a society whose every member were fully rational and faultlessly moral, could not function in a state of anarchy; it is the need of objective laws and of an arbiter for honest disagreements among men that necessitates the establishment of a government.”
Some “anarcho-capitalists” (a contradiction in terms) suggest that “corporate organizations” would be able to provide the physical protection for their “customers” making government unnecessary.Those who advocate “anarcho-capitalism” seek to replace the rule of law, with a rule of the mob. The proper name for such an organization is not “corporations,” but street gangs, who fund their business through extortion of their victims (inaccurately called “customers”).
Government is a single agency with a monopoly on the power to legally use force in a specific geographic area. What “anarcho-capitalists” purpose are multiple agencies in the same geographic area, that have the power to use force subject to no rule of law.
For those who want an illustration of what happens when two ‘competing-governments’ are arguing with each other in the same geographical area, see: Bosnia. On a macro-level, the balkanized wars in Bosnia and Rwanda are the result of the anarcho-capitalist’s ill-thought-out nightmare: a species of collectivism, where one is subject to the whims of the tribe or gang in power.
On a micro-level one can observe anarchism in black markets, where drug dealers compete on the same “turf” to “protect” their interests. It is to subject “might” to “right,” that one requires rights, and that one requires a government to protect those rights.
Those who attempt to combine anarchism with capitalism, make the error of confusing the peaceful form of competition of capitalism — trade, ideas, and dollars — with the brutal “jungle” form of competition of anarchism — brutality, whims, and bombs.
What happens when one ‘corporate protection agency’ disagrees with another in the same geographic area? By what method do they solve their dispute? They do it by competition not with dollars, but with guns. They seek to solve their dispute by resorting to force against each other, i.e., a perpetual state of civil war. Under such a system, which gang wins? The gang that is the most brutal.
Anarchism is not a form of capitalism; anarchism is a form of collectivism, where individual rights are subject to the rule of competing gangs. Under such a system, any individual would beg for the relative safety of a dictatorship.