Not Merely a Theoretical Deduction
Libertarians
wish to limit the role of the state to specific, sharply circumscribed tasks,
among which the protection of property rights is by far the most important. It
is therefore not correct to assume that libertarians are calling for a smaller
state since the imperative need to protect property calls for any means
necessary and that often includes a much larger state. No doubt Libertarians
would prefer a tiny state, indeed one small enough to drown in the bathtub, but
that’s a utopian goal impractical for the foreseeable future for existing
Libertarianism, aka Libertarianism in one country. In fact, under contemporary
circumstances, the Libertarian program is a recipe for a greatly enlarged
state. That’s because the greater the degree of inequality in a society, the
more pressing the need for a powerful government to protect the possessors of
great wealth by maintaining an enormous military, by hiring additional police
and giving them a freer hand, by making the justice system more punitive and
arbitrary, by building more prisons and filling them up, by instituting
comprehensive surveillance systems, and by infiltrating possible dissident
groups with spies and provocateurs. Of course, one could hope—one could have
hoped—that inequality would not grow to the point that all this would be
necessary; but here’s the problem. While libertarianism is keen on the state’s
police power, it insists that government has no business doing anything that
would effectively lessen inequality. Unfortunately, the existing economic
system has a built-in tendency to increase disparities of wealth and income if
only because the best way to acquire money is to already possess it. This
built-in positive feedback loop has profoundly destabilizing effects, which is
why all the developed nations have developed mechanisms of income and wealth redistribution,
not to destroy capitalism, but precisely to allow it to continue. Libertarianism
maintains that all of these mechanisms—progressive income and inheritance taxes,
welfare, public education, social insurance schemes, universal health
insurance—are illegitimate. In the absence of effective redistribution, the
only option is greater state power to protect the haves from the have nots. Libertarianism,
for all its advertised hostility to government, promotes a larger state much as
the Bolsheviks created a totalitarian state in the name of a philosophy that
called for the withering away of the state.