Th e Iron Fis t

Be h ind Th e
Invis ibl
e H and
Corporate Capital is m As a State -
Guarante e d Sys te m ofPrivile ge

Mutual is m , as a varie ty ofanarch is m , goe s back to P.J. Proudh on

in France and Jos iah W arre n in th e U.S. Itfavors , to th e e xte nt
pos s ibl e , an e vol utionary approach to cre ating a ne w s ocie ty. It
e m ph as ize s th e im portance ofpe ace fulactivity in buil ding
al te rnative s ocialins titutions w ith in th e e xis ting s ocie ty, and
s tre ngth e ning th os e ins titutions untilth e y final ly re pl
ace th e
e xis ting s tatis ts ys te m ;doing w h ate ve r is pos s ible (in th e w ords
ofth e W obbl y slogan) to "buil d th e s tructure ofth e ne w s ocie ty
w ith in th e s h e l
lofth e ol d" be fore w e try to bre ak th e s h e ll.
Ke vin A Cars on
PaulRos e nbe rg. "Th e Em pire Strik e s Back : Pol
ice Re pre s s ion ofProte s tFrom Se attl
e to
L.A." L.A. Inde pe nde ntM e dia Ce nte r 13 Augus t2000, at Th e Iron Fis tBe h ind th e Invis ibl
e H and
h ttp://w w w .r2k ph il
ly.org/pdf/e m pire -s trik e s .pdf
M urray Roth bard. "Confe s s ions ofa Righ t-W ing Libe ral
," in H e nry J. Sil
ve rm an, e d.,
Am e rican RadicalTh ough t(Le xington, M as s .: D.C. H e ath and Co., 19 70). Introduction
Roth bard. M an, Econom y, and State : A Tre atis e on Econom ic Principl
e s (Los Ange l
es:
Nas h Publ
is h ing, 19 52, 19 70). M anorial is m , com m onl y, is re cogniz e d to h ave be e n founde d by
Roth bard. Pow e r and M ark e t(Ne w York : Ne w York Unive rs ity Pre s s , 19 77). robbe ry and us urpation;a rul ing cl
as s e s tabl
is h e d its e lfby force ,
Adam Sm ith . Th e W e al
th ofNations . Gre atBook s e dition (Encycl
ope dia Brittanica, Inc., and th e n com pe l l
e d th e pe as antry to w ork for th e profitofth e ir
19 52). lords . Butno s ys te m ofe xpl oitation, including capital is m , h as e ve r
Te s tim ony ofCh airm an Al
an Gre e ns pan. U. S. Se nate Com m itte e on Bank ing, H ous ing, be e n cre ate d by th e action ofa fre e m ark e t. Capital is m w as
and Urban Affairs . 26 Fe bruary 19 9 7, at founde d on an actofrobbe ry as m as s ive as fe udal is m . Ith as be e n
h ttp://w w w .fe de ral
re s e rve .gov//boarddocs /h h /19 9 7/fe bruary/te s tim ony/h tm s us taine d to th e pre s e ntby continuals tate inte rve ntion to prote ct
E. P. Th om ps on. Th e M ak ing ofth e Engl
is h W ork ing Cl
as s (Ne w York : Vintage , 19 63, its s ys te m ofprivil e ge , w ith outw h ich its s urvivalis unim aginabl e.
19 66).
Be njam in Tuck e r. Ins te ad ofa Book , by a M an Too Bus y to W rite O ne (Ne w York : H as k e l
l Th e curre nts tructure ofcapitalow ne rs h ip and organiz ation of
H ous e Publ
is h e rs , 189 7 19 69 ). production in our s o-cal le d "m ark e t" e conom y, re fl
e cts coe rcive
Im m anue lW al
le rs te in. H is toricalCapital
is m (London, Ne w York : Ve rs o, 19 83). s tate inte rve ntion prior to and e xtrane ous to th e m ark e t. From th e
Diane Ce cil
ia W e be r. "W arrior Cops : Th e O m inous Grow th ofParam il
itaris m in Am e rican outs e tofth e indus trialre vol ution, w h atis nos tal gically called
Pol
ice De partm e nts " Cato Brie fing Pape r No. 50, 26 Augus t19 9 9 , at "lais s e z -faire " w as in facta s ys te m ofcontinuing s tate inte rve ntion
h ttp://w w w .cato.org/pubs /brie fs /bp-050e s .h tm l to s ubs idiz e accum ul ation, guarante e privil e ge , and m aintain w ork
M ark Z e pe z aue r and Arth ur Naim an. Tak e th e Rich O ffW e l
fare (O donian Pre s s /Com m on dis cipl ine .
Courage Pre s s , 19 9 6).
M os ts uch inte rve ntion is tacitl y as s um e d by m ains tre am righ t-
libe rtarians as partofa "m ark e t" s ys te m . Al th ough a fe w
inte lle ctuall
y h one s tone s lik e Roth bard and H e s s w e re w il l
ing to
look into th e rol e ofcoe rcion in cre ating capital is m , th e Ch icago
s ch ooland Randoids tak e e xis ting prope rty re l ations and cl as s
pow e r as a give n. Th e ir ide al"fre e m ark e t" is m e re ly th e curre nt
s ys te m m inus th e progre s s ive re gul atory and w e l fare s tate --i.e .,
nine te e nth ce ntury robbe r baron capital is m .

Butge nuine m ark e ts h ave a val ue for th e l ibe rtarian l e ft, and w e
s h oul dn'tconce de th e te rm to our e ne m ie s . In fact, capital is m --a
s ys te m ofpow e r in w h ich ow ne rs h ip and controlare divorce d from
labor--coul d nots urvive in a fre e m ark e t. As a m utual is tanarch is t, I
be l ie ve th ate xpropriation ofs urpl us val ue --i.e ., capital is m --cannot
occur w ith outs tate coe rcion to m aintain th e privil e ge ofus ure r,
landl ord, and capital is t. Itw as for th is re as on th atth e fre e m ark e t
m utualis tBe njam in Tuck e r--from w h om righ t-l ibe rtarians s e l
e ctive l
y M ich ae lH arrington. Social
is m (Ne w York : Bantam , 19 70, 19 72).
borrow --re garde d h im s e l
fas a libe rtarian s ocialis t. H arrington. Th e Tw il
igh tofCapital
is m (Sim on and Sch us te r, 19 76).
H e arings on Gl
obaland Innovation-Bas e d Com pe tition. FTC, 29 Nove m be r 19 9 5, at
Itis be yond m y abil ity or purpos e h e re to de s cribe a w orl d w h e re a h ttp://w w w .ftc.gov/opp/gc11219 5.pdf
true m ark e ts ys te m coul d h ave de ve l ope d w ith outs uch s tate Joh n Judis . Bare M inim um : Goodie s for th e Rich H idde n in W age Bil
l," Th e Ne w
inte rve ntion. A w orl d in w h ich pe as ants h ad h e ld onto th e ir l and Re publ
ic 28 O ctobe r 19 9 6, in Proje ctCe ns ore d Ye arbook 19 9 7 (Ne w York : Se ve n
and prope rty w as w ide l y dis tribute d, capitalw as fre e ly avail able to Storie s Pre s s , 19 9 7).
labore rs th rough m utualbank s , productive te ch nol ogy w as fre e l y Frank K ofs k y. H arry S. Trum an and th e W ar Scare of19 48 (Ne w York : St. M artin's
avail able in e ve ry country w ith outpate nts , and e ve ry pe opl e w as Pre s s , 19 9 3).
fre e to de ve lop l ocal l
y w ith outcol onialrobbe ry, is be yond our Pe te r K ropotk in. M utualAid: A Factor ofEvol
ution (Ne w York : Doubl
e day, Page & Co.,
im agination. Butitw oul d h ave be e n a w orl d ofde ce ntral iz e d, s m all
- 19 09 ).
s cal e production for l ocalus e , ow ne d and control le d by th os e w h o W il
liam Laz onick . Bus ine s s O rganiz ation and th e M yth ofth e M ark e tEconom y
did th e w ork --as diffe re ntfrom our w orl d as day from nigh t, or (Cam bridge Unive rs ity Pre s s , 19 9 1).
fre e dom from s l ave ry. Laz onick . Com pe titive Advantage on th e Sh op Fl
oor (Cam bridge and London: H arvard
Unive rs ity Pre s s , 19 9 0).
Th e Subs idy ofH is tory Ch ris Le w is . "Publ
ic As s e ts , Private Profits ," M ul
tinationalM onitor Proje ctCe ns ore d
Ye arbook 19 9 4 (Ne w York : Se ve n Storie s Pre s s , 19 9 4).
Accordingl y, th e s ingl
e bigge s ts ubs idy to m ode rn corporate Tibe r M ach an. "O n Airports and IndividualRigh ts ," Th e Fre e m an: Ide as on Libe rty.
capital is m is th e s ubs idy ofh is tory, by w h ich capitalw as original l
y Fe bruary 19 9 9 .
accum ul ate d in a fe w h ands , and l abor w as de prive d ofacce s s to Ste ve n A. M argl
in. "W h atDo Bos s e s Do?Th e O rigins and Functions ofH ie rarch y in
th e m e ans ofproduction and force d to s e l lits e l
fon th e buye r's Capital
is tProduction--PartI" Re vie w ofRadicalPol
iticalEconom ics 6:2 (Sum m e r 19 74).
te rm s . Th e curre nts ys te m ofconce ntrate d capitalow ne rs h ip and K arlM arx and Frie drich Enge l
s . CapitalVol
. O ne , Col
le cte d W ork s v. 35 (Ne w York :
large -s cal e corporate organiz ation is th e dire ctbe ne ficiary ofth at Inte rnationalPubl
is h e rs , 19 9 6).
originals tructure ofpow e r and prope rty ow ne rs h ip, w h ich h as Se ym our M e l
m an. Profits W ith outProduction. (Ne w York : Al
fre d A. K nopf, 19 83).
pe rpe tuate d its e lfove r th e ce nturie s . C. W righ tM il
ls . Th e Pow e r El
ite (O xford Unive rs ity Pre s s , 19 56, 2000).
David M ontgom e ry. Th e Fal
lofth e H ous e ofLabor (Ne w York : Cam bridge Unive rs ity
For capital is m as w e k now itto com e about, itw as e s s e ntialfirs tof Pre s s , 19 79 ).
al lfor l
abor to be s e parate d from prope rty. M arxians and oth e r M ontgom e ry. W ork e rs Controlin Am e rica (Ne w York : Cam bridge Unive rs ity Pre s s , 19 79 ).
radicale conom is ts com m onl y re fe r to th e proce s s as "prim itive Frank M oral
e s . "U.S. M il
itary CivilDis turbance Pl
anning: Th e W ar atH om e " Cove rt
accum ul ation." "W h atth e capital is ts ys te m de m ande d w as ... a Action Quarte rl
y 69 , Spring-Sum m e r 2000, at
de grade d and al m os ts e rvil
e condition ofth e m as s ofth e pe opl e, h ttp://infow ar.ne t/w arath om e /w arath om e .h tm l
th e trans form ation ofth e m into m e rce narie s , and ofth e ir m e ans of David F. Nobl
e . Am e rica By De s ign: Scie nce , Te ch nol
ogy, and th e Ris e ofCorporate
labor into capital ." Th atm e ante xpropriating th e l and, "to w h ich th e Capital
is m (Ne w York : Al
fre d A. K nopf, 19 77).
[pe as antry] h as th e s am e fe udalrigh ts as th e l ord h im s e l
f." [M arx, Nobl
e . Force s ofProduction: A SocialH is tory ofIndus trialAutom ation (Ne w York : Al
fre d
"Ch apte r 27: Th e Expropriation," Capitalvol
. 1] A. K nopf, 19 84).
M artin K h or K ok Pe ng. Th e Uruguay Round and Th ird W orl
d Sove re ignty (Pe nang,
To gras p th e e norm ity ofth e proce s s , w e m us tunde rs tand th atth e M al
ays ia: Th ird W orl
d Ne tw ork , 19 9 0).
nobil ity's righ ts in l
and unde r th e m anoriale conom y w e re e ntire l
ya Ch ak ravarth i Ragh avan. Re col
oniz ation: GATT, th e Uruguay Round & th e Th ird W orl
d
fe udall e galfiction de riving from conq ue s t. Th e pe as ants w h o (Pe nang, M al
ays ia: Th ird W orl
d Ne tw ork , 19 9 0).
cul tivate d th e l and ofEngl and in 1650 w e re de s ce ndants ofth os e J. B. Robe rts on. Th e Econom ics ofLibe rty. (M ine apol
is : H e rm an K ue h n, 19 16).
 w h o h ad occupie d its ince tim e im m e m orial . By any s tandard of
SO URCES m oral ity, itw as th e ir prope rty in e ve ry s e ns e ofth e w ord. Th e
arm ie s ofW il liam th e Conq ue ror, by no righ toth e r th an force , h ad
M orton S. Baratz . "Corporate Giants and th e Pow e r Structure ," in Rich ard Gil
lam , e d.,
com pe l l
e d th e s e pe as antproprie tors to pay re nton th e ir ow n l and.
Pow e r in Pos tw ar Am e rica (Bos ton: Littl
e , Brow n, and Co., 19 71).
H arry C. Boyte . Th e Back yard Re vol
ution: Unde rs tanding th e Ne w Citiz e n M ove m e nt
J. L. and Barbara H am m ond tre ate d th e s ixte e nth ce ntury vil lage
(Ph il
ade l
ph ia: Te m pl
e Unive rs ity Pre s s , 19 80).
and ope n fie l d s ys te m as a s urvivalofth e fre e pe as ants ocie ty of
Don Carne y. "Dw ayne 's W orl
d," at
Angl o-Saxon tim e s , w ith l andl ordis m s upe rim pos e d on it. Th e
h ttp://w w w .m oth e rjone s .com /m oth e r_ jone s /JA9 5/carne y.h tm l
ge ntry s aw s urviving pe as antrigh ts as a h indrance to progre s s
Al
fons o Ch ardy. "Re agan Aide s and th e 'Se cre t' Gove rnm e nt" M iam i H e ral
d 5 Jul
y 19 87,
and e fficie ntfarm ing;a re vol ution in th e ir ow n pow e r w as a w ay of
ath ttp://w w w .tots e .com /e n/cons piracy/th e _ ne w _ w orl
d_ orde r/s crtgovt.h tm l
bre ak ing pe as antre s is tance . H e nce th e agricul turalcom m unity
Noam Ch om s k y. Cl
as s W arfare : Inte rvie w s w ith David Bars am ian (M onroe , M aine :
w as "tak e n to pie ce s ... and re cons tructe d in th e m anne r in w h ich a dictator
Com m on Courage Pre s s , 19 9 6)
re cons tructs a fre e gove rnm e nt." [Th e Village Laboure r 27-28, 35-36].
Ch om s k y. H ow Fre e is th e Fre e M ark e t?Re s urge nce no. 173.
h ttp://w w w .one w orl
d.org/s e cond_ opinion/ch om s k y.h tm l
W h e n th e Tudors gave e xpropriate d m onas tic l ands to th e nobil ity,
Ch om s k y. W orl
d O rde rs O l
d and Ne w (Ne w York : Col
um bia Unive rs ity Pre s s , 19 9 8).
th e latte r "drove out, e n m as s e , th e h e re ditary s ub te nants and
Citiz e ns for Tax Jus tice . "GO P Le ade rs Dis til
lEs s e nce ofTax Pl
an: Surpris e ! It's
th re w th e ir h ol
dings into one ." [M arx, "Th e Expropriation"]. Th is s tolen
Corporate W e l
fare " 14 Se pte m be r 19 9 9 , ath ttp://w w w .ctj.org/pdf/corp09 9 9 .pdf
land, abouta fifth ofth e arabl e land ofEngl and, w as th e firs tl arge -
Al
e xande r Cock burn. "Th e Jack bootState : Th e W ar Cam e H om e and W e 're Los ing It"
s cal e e xpropriation ofth e pe as antry.
Counte rpunch 10 M ay 2000, ath ttp://w w w .counte rpunch .org/jack boot.h tm l
M aurice Dobbs . Studie s in th e De ve l
opm e ntofCapital
is m (London: Routl
e dge and
Anoth e r m ajor th e ftofpe as antl and w as th e "re form " ofl and l aw
K e gan Paul
, Ltd, 19 63).
by th e s e ve nte e nth ce ntury Re s toration Parl iam e nt. Th e
Gary El
k in. Be njam in Tuck e r--Anarch is tor Capital
is t?at
aris tocracy abol is h e d fe udalte nure s and conve rte d th e ir ow n
h ttp://fl
ag.bl
ack e ne d.ne t/davo/anarch is m /tuck e r/an_ or_ cap.h tm l
e s tate in th e land, untilth e n "onl y a fe udaltitle ," into "righ ts of
El
k in. M utualBank ing. avail
abl
e th rough h ttp://w w w .s ubs itu.com
m ode rn private prope rty." In th e proce s s , th e y abol is h e d th e
Frie drich Enge l
s . Anti-Duh ring. M arx and Enge l
s , Col
le cte d W ork s v. 25 (Ne w York :
te nure righ ts ofcopyh ol de rs . Copyh ol de rs w e re de jure te nants
Inte rnationalPubl
is h e rs , 19 87).
unde r fe udall aw , butonce th e y paid a ne gl igible q uit-re ntfixe d by
Edgar Frie de nbe rg. Th e Dis pos alofLibe rty and O th e r Indus trialW as te s (Garde n City,
cus tom , th e l and w as th e irs to s e l lor be q ue ath . In s ubs tance
N.Y.: Anch or, 19 76).
copyh ol d te nure w as a m anoriale q uival e ntoffre e h ol d;buts ince it
Robe rtGol
ds te in. Pol
iticalRe pre s s ion in Am e rica: 1870 to th e Pre s e nt(Cam bridge , Ne w
de rive d from cus tom itw as e nforce abl e onl y in th e m anor courts .
York : Sch e nk m an Publ
is h ing Co', 19 78).
Unde r th e "re form ," te nants in copyh ol d be cam e te nants at-w il l
,
David M . Gordon. Fatand M e an: Th e Corporate Sq ue e z e ofW ork ing Am e ricans and th e
w h o coul d be e victe d or ch arge d w h ate ve r re ntth e ir l ord s aw fit
[M arx, "Th e Expropriation..."].
M yth ofM anage m e ntDow ns iz ing (Ne w York : Th e Fre e Pre s s , 19 9 6).
W il
liam B. Gre e ne . M utualBank ing (Ne w York : Gordon Pre s s , 1849 , 19 74).
Be njam in Grove . "Gibbons Back s Drug M onopol
y Bil
l," Las Ve gas Sun 18 Fe bruary 2000,
Anoth e r form ofe xpropriation, w h ich be gan in l ate m e die valtim e s
ath ttp://w w w .ah c.um n.e du/Ne w s Al
e rt/Fe b00/022100Ne w s Al
e rt/44500.h tm
and incre as e d dras tically in th e e igh te e nth ce ntury, w as th e
J.L. and Barbara H am m ond. Th e Tow n Laboure r (1760-1832) 2 vol
s . (London:
e ncl os ure ofcom m ons --in w h ich , again, th e pe as ants com m unal ly
Longm ans , Gre e n & Co., 19 17)
h ad as abs ol ute a righ tofprope rty as any de fe nde d by today's
H am m onds . Th e Vil
lage Laboure r (1760-1832) (London: Longm ans , Gre e n & Co., 19 13).
"prope rty righ ts " advocate s . Notcounting e ncl os ure s be fore 1700,
th e H am m onds e s tim ate d totale ncl os ure s in th e e igh te e nth and
nine te e nth ce nturie s ata s ixth or a fifth ofth e arabl e l
and in k e e ping th e e ntire productofh is l
abor.
Engl and [Vil lage Laboure r 42]. E. J. H obs baw m and Ge orge Rude
e s tim ate d e ncl os ure s be tw e e n 1750 and 1850 al one as In a ve ry re als e ns e , e ve ry s ubs idy and privil e ge de s cribe d above
trans form ing "s om e th ing l ik e one q uarte r ofth e cul
tivate d acre age is a form ofs l ave ry. Sl ave ry, s im ply put, is th e us e ofcoe rcion to
from ope n fie l d, com m on l and, m e adow or w as te into private live offofs om e one e l s e 's l
abor. For e xam pl e , cons ide r th e w ork e r
fie lds ...." [Captain Sw ing 27]. w h o pays $300 a m onth for a drug unde r pate nt, th atw oul d cos t
$30 in a fre e m ark e t. Ifh e is paid $15 an h our, th e e igh te e n h ours
Th e rul ing clas s e s s aw th e pe as ants ' righ tin com m ons as a h e w ork s e ve ry m onth to pay th e diffe re nce are s l ave ry. Eve ry
s ource ofe conom ic inde pe nde nce from capital is tand l andl ord, h our w ork e d to pay us ury on a cre ditcard or m ortgage is s l ave ry.
and th us a th re atto be de s troye d. Encl os ure e l im inate d "a Th e h ours w ork e d to pay unne ce s s ary dis tribution and m ark e ting
dange rous ce ntre ofindis cipl ine " and com pe l le d w ork e rs to s e l l cos ts (com pris ing h al fofre tailprice s ), be caus e ofs ubs idie s to
th e ir labor on th e m as te rs ' te rm s . Arth ur Young, a Lincol ns h ire e conom ic ce ntral iz ation, is s l ave ry. Eve ry additionalh our
ge ntl e m an, de s cribe d th e com m ons as "a bre e ding-ground for s om e one w ork s to m e e th is bas ic ne e ds , be caus e th e s tate til ts
'barbarians ,' 'nurs ing up a m is ch ie vous race ofpe opl e '." "[E]ve ry th e fie ld in favor ofth e bos s e s and force s h im to s e l lh is l abor for
one butan idiotk now s ," h e w rote , "th atth e l ow e r cl as s e s m us tbe le s s th an itis w orth , is s l ave ry.
k e ptpoor, or th e y w il lne ve r be indus trious ." Th e Com m e rcialand
Agricul turalM agaz ine w arne d in 1800 th atl e aving th e l abore r Allth e s e form s ofs l ave ry toge th e r probabl y am ountto h al four
"pos s e s s e d ofm ore l and th an h is fam il y can cul tivate in th e w ork ing h ours . Ifw e k e ptth e ful lval ue ofour l abor, w e could
e ve nings " m e antth at"th e farm e r can no l onge r de pe nd on h im for probabl y m aintain curre ntl e ve l
s ofcons um ption w ith a w ork -w e e k
cons tantw ork ." [Th om ps on, Th e M ak ing ofth e Engl is h W ork ing Cl as s , 219 - oftw e nty h ours . As Bil lH ayw ood s aid, for e ve ry m an w h o ge ts a
220, 358]. Sir Rich ard Price com m e nte d on th e conve rs ion ofs e l f- dollar h e didn'ts w e atfor, s om e one e l s e s w e ate d to produce a
s ufficie ntproprie tors into "a body ofm e n w h o e arn th e ir dollar h e ne ve r re ce ive d.
s ubs is te nce by w ork ing for oth e rs ." Th e re w oul d, "pe rh aps , be
m ore l abour, be caus e th e re w il lbe m ore com pul s ion to it." [M arx, O ur s urve y al s o cas ts doubton th e pos ition of"anarch is t" s ocial
"Th e Expropriation...."]. de m ocratNoam Ch om s k y, w h o is notorious for h is dis tinction
be tw e e n "vis ions " and "goal s ." H is long-te rm vis ion is a
M arx cite d parl iam e ntary "acts ofe ncl os ure " as e vide nce th atth e de ce ntral iz e d s ocie ty ofs e l f-gove rning com m unitie s and
com m ons , far from be ing th e "private prope rty ofth e gre at w ork pl ace s , l oos e l y fe de rate d toge th e r--th e traditionalanarch is t
landl ords w h o h ave tak e n th e pl ace ofth e fe udall ords ," actuall
y vis ion. H is im m e diate goal , h ow e ve r, is to s tre ngth e n th e
re q uire d "a parliam e ntary coup d'e tat... for its trans form ation into re gul atory s tate in orde r to bre ak up "private conce ntrations of
private prope rty." ["Th e Expropriation...."]. Th e proce s s ofprim itive pow e r," be fore anarch is m can be ach ie ve d. Butif, as w e h ave
accum ul ation, in allits brutal ity, w as s um m e d up by th e s am e s e e n, capital is m is de pe nde nton th e s tate to guarante e its urvival ,
auth or: itfol low s th atitis s ufficie ntto e l im inate th e s tatis tprops to
capital is m . In a l e tte r of4 Se pte m be r 1867, Enge l s aptl y s um m e d
"th e s e ne w fre e dm e n [i.e . form e r s e rfs ] be cam e s e l
le rs of up th e diffe re nce be tw e e n anarch is ts and s tate s ocial is ts : "Th e y
th e m s e lve s only afte r th e y h ad be e n robbe d ofal lth e ir ow n m e ans s ay 'abol is h th e s tate and capitalw il lgo to th e de vil .' W e propos e
ofproduction, and ofal lth e guarante e s ofe xis te nce afforde d by th e re ve rs e ." Exactl y.
th e ol d fe udalarrange m e nts . And th e h is tory ofth is , th e ir
e xpropriation, is w ritte n in th e annal s ofm ank ind in l e tte rs ofblood
and fire " ["Ch apte r 26: Th e Se cre tofPrim itive Accum ul ation," CapitalVol . 1].
e m be d ide ntity code s in e ve ry docum e ntw ritte n on th e m . Pol ice
force s are e xpe rim e nting w ith com binations ofpubl ic cam e ras , Eve n th e n, th e w ork ing cl as s w as nots ufficie ntl y pow e rle s s . Th e
digitalface -re cognition te ch nol ogy, and databas e s ofdigital s tate h ad to re gul ate th e m ove m e ntofl abor, s e rve as a l abor
ph otos . Im age Data LLC, a com pany in th e proce s s ofbuying e xch ange on be h al fofcapital is ts , and m aintain orde r. Th e s ys te m
digitaldrive rs l ice nce ph otos from al lfifty s tate s , w as e xpos e d as a ofparis h re gul ation ofth e m ove m e ntofpe opl e , unde r th e poor
frontfor th e Se cre tSe rvice . law s and vagrancy l aw s , re s e m bl e d th e inte rnalpas s ports ys te m
ofSouth Africa, or th e re cons truction e ra Bl ack Code s . It"h ad th e
Concl
us ion s am e e ffe cton th e Engl is h agricul turall aboure r," M arx w rote , "as
th e e dictofth e Tartar Boris Godunov on th e Rus s ian pe as antry."
Itis al m os ttoo e as y to bring back Bob Novak and Se cre tary O 'Ne il l ["Th e Expropriation..."] Adam Sm ith ve nture d th atth e re w as "s carce
for anoth e r k ick --butI can'tre s is t. "M arxis tcl as s w arfare ?" "Robbe r a poor m an in Engl and offorty ye ars ofage ... w h o h as notin
baron rh e toric?" W e l l, th e page s above re countth e "cl as s w arfare " s om e partofh is l ife fe l
th im s e l fm os tcrue l ly oppre s s e d by th is il l
-
w age d by th e robbe r barons th e m s e l ve s . Ifth e ir k ind te nd to contrive d l aw ofs e ttl e m e nts " [W e al th ofNations 61].
s q ue allik e pigs w h e n w e tal k aboutcl as s , it's be caus e th e y've
be e n s tuck . Butal lth e s q ue aling in th e w orl d w on'tch ange th e Th e s tate m aintaine d w ork dis cipl ine by k e e ping l
abore rs from
facts . voting w ith th e ir fe e t. Itw as h ard to pe rs uade paris h auth oritie s to
granta m an a ce rtificate e ntitl ing h im to m ove to anoth e r paris h
Butw h atare th e im pl ications ofth e above facts for our m ove m e nt? to s e e k w ork . W ork e rs w e re force d to s tay putand bargain for
Itis com m onl y ack now l e dge d th atth e m anoriale conom y w as w ork in a buye r's m ark e t[Sm ith 60-61].
founde d on force . Al th ough you w il lne ve r s e e th e is s ue addre s s e d
by M il ton Frie dm an, inte l le ctually h one s trigh tl ibe rtarians l ik e Atfirs tgl ance th is w oul d s e e m to be inconve nie ntfor paris h e s
Roth bard ack now l e dge th e rol e ofth e s tate in cre ating Europe an w ith a labor s h ortage [Sm ith 60]. Factorie s w e re buil tats ource s of
fe udal is m and Am e rian s l ave ry. Roth bard, draw ing th e obvious w ate r pow e r, ge ne ral ly re m ove d from ce nte rs ofpopul ation.
concl us ion from th is fact, ack now l e dge d th e righ tofpe as ants or Th ous ands ofw ork e rs w e re ne e de d to be im porte d from far
fre e d s lave s to tak e ove r th e ir "forty acre s and a m ul e " w ith out aw ay. Butth e s tate s ave d th e day by s e tting its e l fup as a
com pe ns ation to th e l andl ord. m iddl e m an in providing l abor-poor paris h e s w ith ch e ap s urplus
labor from e l s e w h e re , de priving w ork e rs ofth e ability to bargain
Butw e h ave s e e n th atindus trialcapital is m , to th e s am e e xte ntas for be tte r te rm s . A cons ide rabl e trade aros e in ch il
dl abore rs w h o
m anorial is m or s lave ry, w as founde d on force . Lik e its w e re in no pos ition to bargain in any cas e [th e H am m onds , Th e Tow n
pre de ce s s ors , capital is m coul d noth ave s urvive d atany pointin its Laboure r 1:146].
h is tory w ith outs tate inte rve ntion. Coe rcive s tate m e as ure s at
e ve ry s te p h ave de nie d w ork e rs acce s s to capital , force d th e m to Re l ie f"w as s e l
dom be s tow e d w ith outth e paris h cl aim ing th e
sel lth e ir l abor in a buye r's m ark e t, and prote cte d th e ce nte rs of e xcl us ive righ tofdis pos ing, atth e ir pl e as ure , ofallth e ch il
dre n of
e conom ic pow e r from th e dange rs ofth e fre e m ark e t. To q uote th e pe rs on re ce iving re l
ie f," in th e w ords ofth e Com m itte e on
Be njam in Tuck e r again, l andl ords and capital is ts cannote xtract Paris h Appre ntice s , 1815 [th e H am m onds , Tow n Laboure r 1:44, 147].
s urpl us val ue from l abor w ith outth e h e l p ofth e s tate . Th e m ode rn Eve n w h e n Poor Law com m is s ione rs e ncourage d m igration to
w ork e r, l ik e th e s l
ave or th e s e rf, is th e victim ofongoing robbe ry; labor-poor paris h e s , th e y dis courage d adul tm e n and "Pre fe re nce
h e w ork s in an e nte rpris e buil tfrom pas ts tol enl abor. By th e s am e w as give n to 'w idow s w ith l arge fam il ie s ofch il dre n or
principl e s th atRoth bard re cogniz e d in th e agrarian re al m , th e h andicrafts m e n... w ith large fam il ie s .'" In addition, th e avail abil ity
m ode rn w ork e r is jus tifie d in tak ing dire ctcontrolofproduction, and ofch e ap l abor from th e poor-l aw com m is s ione rs w as de l ibe rate ly
us e d to drive dow n w age s ;farm e rs w oul d dis ch arge th e ir ow n day- Uruguay Round ofGATT s natch e d totalvictory from th e jaw s of
l
abore rs and ins te ad appl y to th e ove rs e e r for h e l
p [Th om ps on 223- de fe at;ite nde d al lbarrie rs to TNCs buying up e ntire e conom ie s ,
224]. l
ock e d th e w e s tinto m onopol y controlofm ode rn te ch nol
ogy, and
cre ate d a w orl d gove rnm e nton be h alfofglobalcorporations .
Al th ough th e Com bination Law s th e ore tical ly appl ie d to m as te rs as
wel las w ork m e n, in practice th e y w e re note nforce d agains tth e In th e m e antim e th e U.S. w as , in th e w ords ofRich ard K . M oore ,
latte r [Sm ith 61;th e H am m onds , Tow n Laboure r 1:74]. "A Journe ym an im porting te ch niq ue s ofs ocialcontrolfrom th e im pe rialpe riph e ry
Cotton Spinne r"--a pam ph l e te e r q uote d by E. P. Th om ps on [pp. to th e core are a. W ith th e h e lp ofth e Drug W ar and th e National
19 9 -202]--de s cribe d "an abom inabl e com bination e xis ting am ongs t Se curity State , th e apparatus ofre pre s s ion continue d to grow .
th e m as te rs ," in w h ich w ork e rs w h o h ad l e ftth e ir m as te rs be caus e Th e Drug W ar h as turne d th e Fourth Am e ndm e ntinto toil et
ofdis agre e m e ntove r w age s w e re e ffe ctive l y bl ack l is te d. Th e pape r;civilforfe iture , w ith th e aid ofjail h ous e s nitch e s , give s
Com bination Law s re q uire d s us pe cts to ans w e r inte rrogations on pol ice th e pow e r to s te alprope rty w ith oute ve r fil ing ch arge s --a
oath , e m pow e re d m agis trate s to give s um m ary judgm e nt, and lucrative s ource offunds for h e l icopte rs and k e vl ar ve s ts . SW AT
al low e d s um m ary forfe iture offunds accum ul ate d to aid th e te am s h ave le d to th e m ilitariz ation ofl ocalpol ice force s , and
fam il ie s ofs trik e rs [Tow n Laboure r 123-127]. And th e l aw s s e tting cros s -training w ith th e m ilitary h as le d m any urban pol ice
m axim um rate s ofpay am ounte d to a s tate e nforce d s ys te m of de partm e nts to vie w th e l ocalpopul ation as an occupie d e ne m y
com bination for th e m as te rs . As Adam Sm ith putit, "[w ]h e ne ve r th e [W e be r, W arrior Cops ].
le gis lature atte m pts to re gul ate th e diffe re nce s be tw e e n th e
m as te rs and th e ir w ork m e n, its couns e l lors are al w ays th e Re agan's crony Giuffrida re s urface d as h e ad ofFEM A, w h e re h e
m as te rs ." [p. 61]. w ork e d w ith O l ive r North to fine -tune Garde n Pl ot. North , as th e
NSC l iais on w ith FEM A from 19 82-84, de ve l ope d a pl an "to
Th e w ork ing cl as s life s tyle unde r th e factory s ys te m , w ith its ne w s upe nd th e cons titution in th e e ve ntofa nationalcris is , s uch as
form s ofs ocialcontrol , w as a radicalbre ak w ith th e pas t. It nucl e ar w ar, viol e ntand w ide s pre ad inte rnaldis s e ntor national
invol ve d dras tic l os s ofcontrolove r th e ir ow n w ork . Th e oppos ition to a U.S. m il itary invas ion abroad." [Ch ardy, "Re agan
s e ve nte e nth ce ntury w ork cal e ndar w as s tillh e avily infl ue nce d by Aide s and th e 'Se cre t' Gove rnm e nt"]. Garde n Pl
ot, inte re s tingl
y, w as
m e die valcus tom . Al th ough th e re w e re l
ong days in s purts be tw e e n im pl e m e nte d during th e Rodne y K ing Riots and in re ce ntanti-
pl anting and h arve s t, inte rm itte ntpe riods ofl igh tw ork and th e gl obal iz ation prote s ts . De lta Force provide d inte l l
ige nce and
prol ife ration ofs aints days com bine d to re duce ave rage w ork -tim e advice in th os e pl ace s and atW aco [Ros e nbe rg, Th e Em pire Strik e s
wel lbe l ow our ow n. And th e pace ofw ork w as ge ne ral l
y Back ;Cock burn, Th e Jack bootState ].
de te rm ine d by th e s un or th e biol ogicalrh yth m s ofth e l abore r, w h o
gotup afte r a de ce ntnigh t's s l e e p, and s atdow n to re s tw h e n h e Anoth e r innnovation is to turn e ve ryone w e de alw ith into a pol ice
fe ltlik e it. Th e cottage r w h o h ad acce s s to com m on l and, e ve n age nt. Bank s routine l y re port"s us picious " m ove m e nts ofcas h ;
w h e n h e w ante d e xtra incom e from w age l abor, coul d tak e w ork on unde r "k now your cus tom e r" program s , re tail e rs re portpurch as e s
a cas ualbas is and th e n re turn to w ork ing for h im s e l f. Th is w as an ofite m s w h ich can conce ivabl y be us e d in com bination to
unacce ptabl e de gre e ofinde pe nde nce from a capital is ts tandpoint. m anufacture drugs ;l ibrarie s com e unde r pre s s ure to re porton
re ade rs of"s ubve rs ive " m ate rial;DARE program s turn k ids into
"In th e m ode rn w orld m os tpe opl e h ave to adaptth e m s e l ve s to pol ice inform e rs .
s om e k ind ofdis cipline , and to obs e rve oth e r' pe opl
e 's tim e tabl es,
...or w ork unde r oth e r pe opl
e 's orde rs , butw e h ave to re m e m be r Com pute r te ch nol ogy h as incre as e d th e pote ntialfor s urve il l
ance
th atth e popul ation th atw as fl ung into th e brutalrh yth m ofth e to O rw e l
lian l
e ve l
s . Pe ntium III proce s s ors w e re re ve al
e d to
for m artiall aw , to m ak e s ure th atany s uch dis orde r in th e future factory h ad e arne d its l iving in re l ative fre e dom , and th atth e
coul d be de al tw ith diffe re ntl
y. Joh ns on's ope ration Garde n Pl ot dis cipl ine ofth e e arl y factory w as particul arl y s avage .... No
invol ve d dom e s tic s urve il lance by th e m il itary, continge ncy pl ans e conom is tofth e day, in e s tim ating th e gains or l os s e s offactory
for m il itary coope ration w ith l ocalpol ice in s upre s s ing dis orde r in e m pl oym e nt, e ve r al low e d for th e s train and viol e nce th ata m an
allfifty s tate s , pl ans for m as s pre ve ntive de te ntion, and joint s uffe re d in h is fe e l
ings w h e n h e pas s e d from a l ife in w h ich h e
e xe rcis e s ofpol ice and th e re gul ar m ilitary [M orale s , U.S. M il
itary Civil coul d s m ok e or e at, or dig or s l e e p as h e pl e as e d, to one in w h ich
Dis turbance Pl anning]. Gove rnor Re agan and h is NationalGuard s om e body turne d th e k e y on h im , and for fourte e n h ours h e h ad
ch ie fLouis Giuffrida w e re e nth us ias tic s upporte rs ofGarde n Pl ot note ve n th e righ tto w h is tl e . Itw as l ik e e nte ring th e airl e s s and
e xe rcis e s in Cal ifornia. Re agan w as al s o a pione e r in cre ating laugh te rl ess l ife ofa pris on" [th e H am m onds , Tow n Laboure r 1:33-34].
q uas i-m il itary SW AT te am s , w h ich now e xis tin e ve ry m ajor tow n.
Th e factory s ys te m coul d noth ave be e n im pos e d on w ork e rs
Th e w ave ofw il dcats trik e s in th e e arl y 19 70s s h ow e d th at w ith outfirs tde priving th e m ofal te rnative s , and forcibly de nying
organiz e d l abor coul d no l onge r k e e p its partofth e bargain, and acce s s to any s ource ofe conom ic inde pe nde nce . No unbrok e n
th atth e s ocialcontracts h oul d be re as e s s e d. Atth e s am e tim e , h um an be ing, w ith a s e ns e offre e dom or dignity, w oul d h ave
th e bus ine s s pre s s w as fl oode d w ith articl e s on th e im pe nding s ubm itte d to factory dis cipl ine . Ste ph e n M argl in com pare d th e
"capitals h ortage ," and cal ls for s h ifting re s ource s from nine te e nth ce ntury te xtile factory, s taffe d by paupe r ch il dre n
cons um ption to capitalaccum ul ation. Th e y pre dicte d frank l y th ata bough tatth e w ork h ous e s l ave m ark e t, to Rom an brick and potte ry
cap on re alw age s w oul d be h ard to force on th e publ ic in th e factorie s w h ich w e re m anne d by s l ave s . In Rom e , factory
e xis ting pol iticale nvironm e nt[Boyte , Back yard Re vol ution pp. 13-16]. production w as e xce ptionalin m anufacture s dom inate d by
Th is s e ntim e ntw as e xpre s s e d by H untington e tal . in Th e Cris is of fre e m e n. Th e factory s ys te m , th rough outh is tory, h as be e n
De m ocracy (a pape r for th e Tril ate ralIns titution--a good proxy for pos s ibl e onl y w ith a w ork force de prive d ofany viabl e alte rnative .
el ite th ink ing);th e y argue d th atth e s ys te m w as col laps ing from
de m and ove rl oad, be caus e ofan e xce s s ofde m ocracy. "Th e s urviving facts ... s trongl y s ugge s tth atw h e th e r w ork w as
organiz e d along factory l ine s w as in Rom an tim e s de te rm ine d, not
Corporations e m brace d th e ful lrange ofunion-bus ting pos ibil itie s by te ch nologicalcons ide rations , butby th e re l ative pow e r ofth e
in Taft-H artle y, ris k ing onl
y tok e n fine s from th e NLRB. Th e y tw o producing cl as s e s . Fre e dm e n and citiz e ns h ad s ufficie nt
dras tical l
y incre as e d m anage m e ntre s ource s de vote d to pow e r to m aintain a guil d organiz ation. Sl ave s h ad no pow e r--and
w ork pl ace s urve il lance and control , a ne ce s s ity be caus e of e nde d up in factorie s " ["W h atDo Bos s e s Do?"].
dis conte ntfrom s tagnantw age s and m ounting w ork l oads [Fatand
M e an]. W age s as a pe rce ntage ofval ue adde d h ave de cl ine d Th e probl e m w ith th e old "putting out" s ys te m , in w h ich cottage
dras tical l
y s ince th e 19 70s ;al lincre as e s in l abor productivity h ave w ork e rs produce d te xtil e s on a contractualbas is , w as th atitonl y
be e n ch anne l l
e d into profitand inve s tm e nt, rath e r th an w age s . A elim inate d w ork e r controlofth e product. Th e factory s ys te m , by
ne w Col d W ar m il itary buil
dup furth e r trans fe rre d publ ic re s ource s elim inating w ork e r controlofth e production proce s s , h ad th e
to indus try. advantage ofdis cipl ine and s upe rvis ion, w ith w ork e rs organiz e d
unde r an ove rs e e r.
A s e rie s ofe ve nts l
ik e th e fallofSaigon, th e nonal igne d
m ove m e nt, and th e Ne w Inte rnationalEconom ic O rde r w e re tak e n "th e origin and s ucce s s ofth e factory l ay notin te ch nol ogical
as s igns th atth e trans -nationalcorporate e m pire w as l os ing s upe riority, butin th e s ubs titution ofth e capital
is t's for th e w ork e r's
control . Re agan's e s cal ating inte rve ntion in Ce ntralAm e rica w as a controlofth e w ork proce s s and th e q uantity ofoutput, in th e
partialre s pons e to th is pe rce ption. Butm ore im portantl y th e ch ange in th e w ork m an's ch oice from one ofh ow m uch to w ork
and produce , bas e d on h is pre fe re nce s for le is ure and goods , to provis ion, w ith one e xce ption: inte re s tde ductions w e re re m ove d
one ofw h e th e r or notto w ork atal l
, w h ich ofcours e is h ardl
y for e m pl
oye e buyouts [Judis , "Bare M inim um "].
m uch ofa ch oice ."
Righ tl ibe rtarians lik e Roth bard obje ctto cl as s ifying tax
M argl in took Adam Sm ith 's cl as s ic e xam pl e ofth e divis ion ofl abor e xpe nditure s as s ubs idie s . Itpre s um e s th attax m one y righ tful ly
in pin-m ak ing, and s tood iton its h e ad. Th e incre as e d e fficie ncy be l ongs to th e gove rnm e nt, w h e n in factth e gove rnm e ntis onl y
re s ulte d, notfrom th e divis ion ofl abor as s uch , butfrom dividing le tting th e m k e e p w h atis righ tfully th e irs . Th e tax code is inde e d
and s e q ue ncing th e proce s s into s e parate tas k s in orde r to re duce unfair, butth e s ol ution is to e lim inate th e taxe s for e ve ryone , not
s e t-up tim e . Th is could h ave be e n accom pl is h e d by a s ingl
e to l e ve lth e code up [Roth bard, Pow e r and M ark e tp. 104]. Th is is a
cottage w ork m an s e parating th e various tas k s and th e n ve ry s h ak y argum e nt. Supporte rs oftax code re form in th e
pe rform ing th e m s e q ue ntiall
y (i.e ., draw ing outth e w ire for an 19 80s ins is te d th atth e s ol e le gitim ate purpos e oftaxation w as to
e ntire run ofproduction, th e n s traigh te ning it, th e n cutting it, e tc.). rais e re ve nue , notto provide carrots and s tick s for s ocial
e ngine e ring purpos e s . And, s e m antic q uibbl ing as ide , th e
"w ith outs pe cial iz ation, th e capitalis th ad no e s s e ntialrol e to play curre nttax s ys te m w oul d be e xactl y th e s am e ifw e s tarte d out
in th e production proce s s . Ife ach produce r coul d h im s e l
finte grate w ith z e ro tax rate s and th e n im pos e d a punitive tax onl y on
th e com pone nttas k s ofpin m anufacture into a m ark e tabl e th os e note ngage d in favore d activitie s . Eith e r w ay, th e une ve n
product, h e w oul d s oon dis cove r th ath e h ad no ne e d to de alw ith tax pol icy give s a com pe titive advantage to privil e ge d indus trie s .
th e m ark e tfor pins th rough th e inte rm e diation ofth e putte r-oute r.
H e coul dsel ldire ctl y and appropriate to h im s e l fth e profitth atth e Pol
iticalRe pre s s ion
capital is tde rive d from m e diating be tw e e n th e produce r and th e
m ark e t." In tim e s ofunus ualpopul ar cons cious ne s s and m obil iz ation,
w h e n th e capital is ts ys te m face s grave pol iticalth re ats , th e s tate
Th is principl e is atth e ce nte r ofth e h is tory ofindus trialte ch nol ogy re s orts to re pre s s ion untilth e dange r is pas t. Th e m ajor s uch
for th e las ttw o h undre d ye ars . Eve n give n th e ne ce s s ity of w ave s in th is country--th e H aym ark e tre action, and th e re d
factorie s for s om e form s ofl arge -s cal e , capital -inte ns ive s care s afte r th e w orl d w ars --are re counte d by Gol ds te in [Pol itical
m anufacturing, th e re is us ual ly a ch oice be tw e e n al te rnate Re pre s s ion in M ode rn Am e rica]. Butth e w ave ofre pre s s ion w h ich
productive te ch nol ogie s w ith in th e factory. Indus try h as be gan in th e 19 70s , th ough l e s s inte ns e , h as be e n pe rm ane ntl y
cons is te ntly ch os e n te ch nol ogie s w h ich de -s k il lw ork e rs and s h ift ins titutional iz e d to a uniq ue e xte nt.
de cis ion-m ak ing upw ard into th e m anage rialh ie rarch y. As l ong
ago as 1835, Dr. Andre w Ure (th e ide ol ogicalgrandfath e r of Untilth e l ate 19 60s , e l ite pe rs pe ctive w as gove rne d by th e Ne w
Tayl oris m and Fordis m ), argue d th atth e m ore s k il le d th e De als ocialcontract. Th e corporate s tate w oul d buy s tabil
ity and
w ork m an, "th e m ore s e l f-w il
le d and... th e l e s s fita com pone ntofa popul ar acq uie s ce nce in im pe rial is te xploitation abroad by
m e ch anicals ys te m " h e be cam e . Th e s ol ution w as to e l im inate guarante e ing a l e ve lofpros pe rity and s e curity to th e m iddl e
proce s s e s w h ich re q uire d "pe cul iar de xte rity and s te adine s s of clas s . In re turn for h igh e r w age s , unions w oul d e nforce
h and... from th e cunning w ork m an" and re pl ace th e m by a m anage m e ntcontrolofth e w ork pl ace . Buts tarting during th e
"m e ch anis m , s o s e lf-re gul ating, th ata ch il d m ay s upe rinte nd it." Vie tnam e ra, th e e l ite 's th ink ing unde rw e nta profound ch ange .
os oph y ofM anufacture s , in Th om ps on 360]. And th e principl
[Ph il e h as
be e n fol low e d th rough outth e tw e ntie th ce ntury. W il liam Laz onick , Th e y concl ude d from th e 19 60s e xpe rie nce th atth e s ocial
David M ontgom e ry, David Nobl e , and K ath e rine Stone h ave contracth ad fail e d. In re s pons e to th e antiw ar prote s ts and race
produce d an e xce l le ntbody ofw ork on th is th e m e . Eve n th ough riots , LBJ and Nixon be gan to cre ate an ins titutionalfram e w ork
s w e e tde al s th e y give th e ir corporate joh ns . In m y ow n s tate of corporate e xpe rim e nts in w ork e r s e l
f-m anage m e ntincre as e
Ark ans as , th e incorruptibl e Baptis tpre ach e r w h o s e rve s as m orale and productivity, and re duce injurie s and abs e nte e is m ,
gove rnor oppos e d a bil lto re q uire q uarte rl y publ ic re ports from th e be yond th e h ope s ofm anage m e nt, th e y are us ual l
y abandone d
De partm e ntofEconom ic De ve l opm e nton its s pe cialtax bre ak s to outoffe ar ofl os s ofcontrol .
bus ine s s e s . "[K ]e e ping ince ntive re cords from publ ic s crutiny is
im portantin attracting bus ine s s ," and re l e as ing "proprie tary Ch ris toph e r Las ch , in h is fore w ord to Nobl e 's Am e rica by De s ign,
inform ation" coul d h ave a "ch illing e ffe ct." [Ark ans as De m ocrat-Gaz e tte ch aracte riz e d th e proce s s ofde -s k ill
ing in th is w ay:
3 Fe b. 2001]. Buts tate and l ocalcorporate w e l fare coul d e as il
y
am ountto a figure com parabl e to fe de ral . Th e capital is t, h aving e xpropriate d th e w ork e r's prope rty,
gradual ly e xpropriate d h is te ch nicalk now l e dge as w e l l, as s e rting
Tak e n as a w h ol e , dire cttax bre ak s to bus ine s s atal lle ve l s of h is ow n m as te ry ove r production....
gove rnm e ntare probabl y on th e s am e orde r ofm agnitude as
corporate profits . And th is unde rs tate s th e e ffe ctofcorporate Th e e xpropriation ofth e w ork e r's te ch nicalk now l e dge h ad as a
wel fare , s ince itdis proportionate l y goe s to a h andfulofgiantfirm s logicalcons e q ue nce th e grow th ofm ode rn m anage m e nt, in
in e ach indus try. For e xam pl e , acce le rate d de pre ciation favors w h ich te ch nicalk now l e dge cam e to be conce ntrate d. As th e
e xpans ion by e xis ting firm s . Ne w firm s find itofl ittl
e be ne fit, s ince s cie ntific m anage m e ntm ove m e nts pl itup production into its
th e y are l ik e l
y to los e m one y th e ir firs tfe w ye ars . An e s tabl is h e d com pone ntproce dure s , re ducing th e w ork e r to an appe ndage of
firm , h ow e ve r, can run a l os s in a ne w ve nture and ch arge th e th e m ach ine , a gre ate xpans ion ofte ch nicaland s upe rvis ory
acce l e rate d de pre ciation agains tits profits on ol d facil itie s [Baratz , pe rs onne ltook pl ace in orde r to ove rs e e th e productive proce s s
"Corporate Giants and th e Pow e r Structure "]. as a w h ol e [pp. xi-xii].

Th e m os toutrage ous ofth e s e tax e xpe nditure s is th e s ubs idy to Th e e xpropriation ofth e pe as antry and im pos ition ofth e factory
th e actualfinancialtrans actions by w h ich capitalis conce ntrate d. labor s ys te m w as notaccom pl is h e d w ith outre s is tance ;th e
Th e inte re s tde duction on corporate de bt, m os tofw h ich w as run w ork e rs k ne w e xactl y w h atw as be ing done to th e m and w h at
up on l e ve rage d buyouts and acq uis itions , cos ts th e tre as ury ove r th e y h ad l os t. During th e 179 0s , w h e n rh e toric from th e Jacobins
$200 bil l
ion a ye ar [Z e pe z aue r p. 122-123]. W ith outth is de duction, and Tom Paine w e re w ide s pre ad am ong th e radical iz e d w ork ing
th e w ave ofm e rge rs in th e 19 80s , or th e m e gam e rge rs ofth e cl as s , th e rul e rs of"th e cradle ofl ibe rty" live d in te rror th atth e
19 9 0s , coul d ne ve r h ave tak e n pl ace . O n top ofe ve ryth ing e lse, country w oul d be s w e ptby re vol ution. Th e s ys te m ofpol ice s tate
th is acts as a m as s ive dire cts ubs idy to bank ing, incre as ing th e control s ove r th e popul ation re s e m bl e d an al ie n occupation
pow e r offinance capitalin th e corporate e conom y to a l e ve l re gim e . Th e H am m onds re fe rre d to corre s ponde nce be tw e e n
gre ate r th an ith as be e n s ince th e Age ofM organ. north -country m agis trate s and th e H om e O ffice , in w h ich th e l aw
w as frank l y tre ate d "as an ins trum e ntnotofjus tice butof
A cl os e l
y re l
ate d s ubs idy is th e e xe m ption from capitalgains of re pre s s ion," and th e w ork ing cl as s e s "appe ar[e d]...
s e curitie s trans actions invol ve d in corporate m e rge rs (i.e . "s tock cons picuous l y as a h e l
otpopul ation [Tow n Laboure r 72]."
s w aps ")--e ve n th ough pre m ium s are us ual ly paid w e llove r th e
m ark e tval ue ofth e s tock [Gre e n p. 11]. Th e 19 86 tax re form ... in th e l
igh tofth e H om e O ffice pape rs , ...none ofth e pe rs onal
incl ude d a provis ion w h ich pre ve nte d corporations from de ducting righ ts attach ing to Engl is h m e n pos s e s s e d any re al ity for th e
fe e s for inve s tm e nt'bank s and advis e rs invol ve d in le ve rage d w ork ing cl as s e s . Th e m agis trate s and th e ir cl e rk s re cogniz e d no
buyouts . Th e 19 9 6 m inim um w age incre as e re pe al e d th is lim itto th e ir pow e rs ove r th e fre e dom and th e m ove m e nts of
w ork ing m e n. Th e Vagrancy Law s s e e m e d to s upe rce de th e
e ntire ch arte r ofan Engl is h m an's libe rtie s . Th e y w e re us e d to put s ucce s s fulpl antope ration untilafte r w e h ad done al lth e w ork
into pris on any m an or w om an ofth e w ork ing cl as s w h o s e e m e d and ope rate d s ucce s s ful ly.... Th is is s til
la s ituation ofpyram iding
to th e m agis trate an inconve nie ntor dis turbing ch aracte r. Th e y unce rtaintie s .... Th e re is a dis tinction be tw e e n ris k -tak ing and
offe re d th e e as ie s tand m os te xpe ditious w ay ofproce e ding re ck l
e s s ne s s " [Ibid. pp. 278-279 ].
agains tany one w h o trie d to col le ctm one y for th e fam il ie s of
lock e d-outw ork m e n, or to dis s e m inate l ite rature th atth e So m uch for profitas a re w ard for th e e ntre pre ne ur's ris k . Th e s e
m agis trate s th ough tunde s irabl e [Ibid. 80]. "e ntre pre ne urs " m ak e th e ir profits in th e s am e w ay as a
s e ve nte e nth -ce ntury courtie r, by obtaining th e favor ofth e k ing.
Pe e l 's "bobbie s "--profe s s ionall aw e nforce m e nt--re pl ace d th e To q uote Ch om s k y,
pos s e com itatus s ys te m be caus e th e l atte r w as inade q uate to
controla popul ation ofincre as ingl y dis affe cte d w ork m e n. In th e "th e s e ctors ofth e e conom y th atre m ain com pe titive are th os e
tim e ofth e Luddite and oth e r dis turbance s , crow n official s w arne d th atfe e d from th e publ ic trough .... Th e gl orie s ofFre e Ente rpris e
th at"to appl y th e W atch and W ard Actw oul d be to putarm s into provide a us e fulw e apon agains tgove rnm e ntpol icie s th atm igh t
th e h ands ofth e m os tpow e rful ly dis affe cte d."Atth e outs e tofth e be ne fitth e ge ne ralpopul ation.... Butth e rich and pow e rful ... h ave
w ars w ith France , Pitte nde d th e practice ofq uarte ring th e arm y in long appre ciate d th e ne e d to prote ctth e m s e l ve s from th e
al e h ous e s , m ixe d w ith th e ge ne ralpopul ation. Ins te ad, th e de s tructive force s offre e -m ark e tcapital is m , w h ich m ay provide
m anufacturing dis tricts w e re cove re d w ith barrack s , as "pure l ya s uitabl e th e m e s for rous ing oratory, butonl ysol ong as th e publ ic
m atte r ofpol ice ." Th e m anufacturing are as "cam e to re s e m bl e a h andoutand th e re gul atory and prote ctionis tapparatus are
country unde r m il itary occupation." [Ibid. 9 1-9 2]. s e cure , and s tate pow e r is on cal lw h e n ne e de d" (Ch om s k y,
De te rring De m ocracy p. 144].
Pitt's pol ice s tate w as s uppl e m e nte d by q uas i-private vigil antis m ,
in th e tim e -h onore d tradition ofbl ack s h irts and de ath s q uads e ve r Dw ayne Andre as , th e CEO ofArch e r Danie l s M idland, adm itte d
s ince . For e xam pl e th e "As s ociation for th e Prote ction ofPrope rty th at"[t]h e re is notone grain ofanyth ing in th e w orl d th atis s ol
d in
agains tRe publ icans and Le ve l le rs "--an anti-Jacobin as s ociation th e fre e m ark e t. Notone . Th e onl y place you s e e a fre e m ark e tis
ofge ntry and m il l-ow ne rs conducte d h ous e -to-h ous e s e arch e s in th e s pe e ch e s ofpol
iticians ." [Don Carne y, "Dw ayne 's W orl
d"].
and organiz e d Guy Faw k e s -s tyl e e ffigy burnings agains tPaine ;
"Ch urch and K ing" m obs te rroris e d s us pe cte d radical s [Ch apte r Big bus ine s s al s o e njoys financials upportth rough th e tax code . It
Five , "Pl
anting th e Libe rty Tre e ," in Th om ps on]. is lik e l
y th atm os tofth e Fortune 500 w oul d go bank ruptw ith out
corporate w e l fare . Dire ctfe de raltax bre ak s to bus ine s s in 19 9 6
Th om ps on ch aracte riz e d th is s ys te m ofcontrolas "pol iticaland w e re cl os e to $350 bil lion [Bas e d on m y crunch ing on num be rs in
s ocialaparth e id," and argue d th at"th e re vol ution w h ich did not Z e pe z aue r and Naim an, Tak e th e Rich O ffW e l fare ]. Th is figure ,
h appe n in Engl and w as ful ly as de vas tating" as th e one th atdid for fe de ralcorporate w e l fare al one , is ove r tw o-th irds ofannual
h appe n in France [pp. 19 7-19 8]. corporate profits for 19 9 6 ($460 bil lion) [Statis ticalAbs tractofth e
Unite d State s 19 9 6].
Final ly, th e s tate aide d th e grow th ofm anufacture s th rough
m e rcantil is m . M ode rn e xpone nts ofth e "fre e m ark e t" ge ne ral ly Es tim ate s ofs tate and l ocaltax bre ak s is fairl y im pre s s ionis tic,
tre atm e rcantil is m as a "m is guide d" atte m ptto prom ote s om e s ince th e y vary notonl y w ith e ach critic's s ubje ctive de finition of
unifie d nationalinte re s t, adopte d outofs ince re ignorance of "corporate w e l fare ," butinvol ve th e tax code s offifty s tate s and
e conom ic principl e s . In fact, th e arch ite cts ofm e rcantil is m k ne w th e publ ic re cords ofth ous ands ofm unicipal itie s . Be s ide s m one y
e xactl y w h atth e y w e re doing. M e rcantil is m w as e xtre m e tl
y pim ps in th e s tate and l ocalgove rnm e nts are e m baras s e d by th e
Th e jum bo je tindus try w oul d ne ve r h ave com e aboutw ith out e fficie ntfor its re alpurpos e : m ak ing w e al th y m anufacturing
continuous Col d W ar l e ve ls ofm ilitary s pe nding. Th e m ach ine inte re s ts rich atth e e xpe ns e ofe ve ryone e l s e . Adam Sm ith
tool s ne e de d for producing l arge aircraftw e re s o com pl e x and cons is te ntl y attack e d m e rcantilis m , notas a productofe conom ic
e xpe ns ive th atno "s m al lpe ace tim e orde rs " w oul d h ave provide d a e rror, butas a q uite inte l lige ntatte m ptby pow e rfulinte re s ts to
s ufficie ntproduction run to pay for th e m . W ith outl arge m il itary e nrich th e m s e lve s th rough th e coe rcive pow e r ofth e s tate .
orde rs , th e y w oul d s im ply noth ave e xis te d. Th e aircraftindus try
q uick l y s piral
e d into re d ink afte r 19 45, and w as ne ar bank ruptcy at Britis h m anufacturing w as cre ate d by s tate inte rve ntion to s h ut
th e be ginning ofth e 19 48 w ar s care , afte r w h ich Trum an re s tore d outfore ign goods , give Britis h s h ipping a m onopol y offore ign
itto l ife w ith m as s ive s pe nding. By 19 64, 9 0% ofae ros pace R & D com m e rce , and s tam p outfore ign com pe tition by force . As an
w as funde d by th e gove rnm e nt, w ith m as s ive s pil l
ove r into th e e xam pl e ofth e l atte r, Britis h auth oritie s in India de s troye d th e
el e ctronics , m ach ine tool , and oth e r indus trie s [Noble , Force s of Be ngal e s e te xtil
e indus try, m ak e rs ofth e h igh e s tq ual ity fabric in
Production pp. 6-7;K ofs k y, H arry S. Trum an and th e W ar Scare of19 48]. th e w orld. Al th ough th e y h ad notadopte d s te am -drive n m e th ods
ofproduction, th e re is a re alpos s ibil ity th atth e y w ould h ave
O th e r Subs idie s done s o, h ad India re m aine d pol itically and e conom ical ly
inde pe nde nt. Th e once pros pe rous te rritory ofBe ngalis today
Infras tructure and m il itary s pe nding are notth e onl y e xam pl e s of occupie d by Bangl ade s h and th e Cal cutta are a [Ch om s k y, W orld
th e proce s s by w h ich cos tand ris k are s ocial iz e d, and profitis O rde rs O l
d and Ne w ].
privatiz e d--or, as Roth bard putit, by w h ich "our corporate s tate
us e s th e coe rcive taxing pow e r e ith e r to accum ul ate corporate Th e Am e rican, Ge rm an and Japane s e indus trials ys te m s w e re
capitalor to l ow e r corporate cos ts ." ["Confe s s ions ofa Righ t-W ing cre ate d by th e s am e m e rcantil is tpol icie s , w ith m as s ive tariffs on
"]. Som e ofth e s e gove rnm e ntas s um ptions ofris k and cos t
Libe ral indus trialgoods . "Fre e trade " w as adopte d by s afe l y e s tabl is h e d
are ad h oc and targe te d tow ard s pe cific indus trie s . indus trialpow e rs , w h o us e d "l ais s e z -faire " as an ide ol ogical
w e apon to pre ve ntpote ntialrival s from fol low ing th e s am e path
Am ong th e gre ate s tbe ne ficiarie s ofs uch unde rw riting are ofindus trial iz ation. Capital is m h as ne ve r be e n e s tabl is h e d by
el e ctricalutil itie s . Cl os e to 100% ofal lre s e arch and de ve l opm e nt m e ans ofth e fre e m ark e t, or e ve n by th e prim ary action ofth e
for nucl e ar pow e r is e ith e r pe rform e d by th e gove rnm e ntits e l f, in bourge ois ie . Ith as al w ays be e n e s tabl is h e d by a re vol ution from
its m il itary re actor program , or by l um p-s um R & D grants ;th e above , im pos e d by a pre -capital is trul ing cl as s . In Engl and, it
gove rnm e ntw aive s us e -ch arge s for nucl e ar fue l
s , s ubs idiz e s w as th e lande d aris tocracy;in France , Napol e on II's
uranium production, provide s acce s s to gove rnm e ntl and be l ow bure aucracy;in Ge rm any, th e Junk e rs ;in Japan, th e M e iji. In
m ark e tprice (and buil ds h undre ds ofm il e s ofacce s s roads at Am e rica, th e cl os e s tapproach to a "natural " bourge ois e vol ution,
taxpaye r e xpe ns e ), e nrich e s uranium , and dis pos e s ofw as te at indus trial iz ation w as carrie d outby a m e rcantil is taris tocracy of
s w e e th e artprice s . Th e Price -Ande rs on Actof19 57 l im ite d th e Fe de ralis ts h ipping m agnate s and l andl ords [H arrington, Tw il igh tof
liabil ity ofth e nucl e ar pow e r indus try, and as s um e d gove rnm e nt Capital
is m ].
liabil ity above th atl e ve l[Adam s and Brock pp. 279 -281]. A
W e s tingh ous e officialadm itte d in 19 53, Rom antic m e die val is ts l
ik e Ch e s te rton and Be ll
oc de s cribe d th e
proce s s in th e h igh m iddl e age s by w h ich s e rfdom h ad gradual l y
"Ifyou w e re to inq uire w h e th e r W e s tingh ous e m igh tcons ide r w ith e re d aw ay, and th e pe as ants h ad trans form e d th e m s e l ve s
putting up its ow n m one y.., w e w oul d h ave to s ay "No." Th e cos tof into de facto fre e h ol de rs w h o paid a nom inalq uit-re nt. Th e
th e plantw oul d be a q ue s tion m ark untilafte r w e buil titand, by fe udalcl as s s ys te m w as dis inte grating and be ing re pl ace d by a
th ats ol
e m e ans , found outth e ans w e r. W e w oul d notbe s ure of
m uch m ore l ibe rtarian and l e s s e xpl oitative one . Im m anue l infras tructure , on w h ich th e ove ral le conom y de pe nds . Standard
W al l
e rs te in argue d th atth e l ik e l y outcom e w oul d h ave be e n "a O il, AT& T, and M icros oftw e re al lcas e s in w h ich m onopol y price
s ys te m ofre l ative l
y e q uals m al l-s cal e produce rs , furth e r fl atte ning gouging w as a dange r to th e e conom y as a w h ol e . Th is brings to
outth e aris tocracie s and de ce ntral iz ing th e pol iticals tructure s ." By m ind Enge l s ' obs e rvation th atadvance d capital is m w oul d re ach a
1650 th e tre nd h ad be e n re ve rs e d, and th e re w as "a re as onabl y s tage w h e re th e s tate --"th e officialre pre s e ntative ofcapital is t
h igh l e ve lofcontinuity be tw e e n th e fam il ie s th ath ad be e n h igh s ocie ty"--w oul d h ave to conve rt"th e gre atins titutions for
s trata" in 1450 and 1650. Capital is m , far from be ing "th e ove rth row inte rcours e and com m unication" into s tate prope rty. Enge l s did
ofa back w ard aris tocracy by a progre s s ive bourge ois ie ," "w as notfore s e e th e us e ofantitrus tactions to ach ie ve th e s am e e nd
brough tinto e xis te nce by a l ande d aris tocracy w h ich trans form e d [Anti-Duh ring].
its e l
finto a bourge ois ie be caus e th e ol d s ys te m w as
dis inte grating." [H is toricalCapital is m 41-42, 105-106]. Th is is e ch oe d in M il
itary K e yne s ianis m
partby Arno M aye r [Th e Pe rs is te nce ofth e O l d Re gim e ], w h o argue d for
continuity be tw e e n th e l ande d aris tocracy and th e capital is truling Th e l e ading s e ctors ofth e e conom y, incl uding cybe rne tics ,
cl as s . com m unications , and m il itary indus try, h ave th e ir s al e s and
profits virtual ly guarante e d by th e s tate . Th e e ntire m anufacturing
Th e proce s s by w h ich th e h igh m e die valcivil iz ation ofpe as ant s e ctor, as a w h ol e , w as pe rm ane ntl y e xpande d be yond
proprie tors , craftguil ds and fre e citie s w as ove rth row n, w as vividl y re cognition by an infus ion offe de ralm one y during W orl d W ar II.
de s cribe d by K ropotk in [M utualAid 225]. Be fore th e inve ntion of In 19 39 th e e ntire m anufacturing pl antofth e U.S. w as val ue d at
gunpow de r, th e fre e citie s re pe l le d royalarm ie s m ore ofte n th an $40 bil lion. By 19 45, anoth e r $26 bil lion w orth ofpl antand
not, and w on th e ir inde pe nde nce from fe udaldue s . And th e s e e q uipm e nth ad be e n buil t, "tw o th irds ofitpaid for dire ctl y from
citie s ofte n m ade com m on caus e w ith pe as ants in th e ir s truggl es gove rnm e ntfunds ." Th e top 250 corporations in 19 39 ow ne d
to controlth e l and. Th e abs ol utis ts tate and th e capital is tre vol
ution 65% ofpl antand e q uipm e nt, butduring th e w ar ope rate d 79 % of
itim pos e d be cam e pos s ibl e onl y w h e n artil
le ry coul d re duce al lne w facil itie s builtw ith gove rnm e ntfunds [M il ls , Th e Pow e r El
ite P.
fortifie d citie s w ith a h igh de gre e ofe fficie ncy, and th e k ing coul d 101].
m ak e w ar on h is ow n pe opl e . And in th e afte rm ath ofth is
conq ue s t, th e Europe ofW il l
iam M orris w as l e ftde vas tate d, M ach ine tool s w e re vas tl y e xpande d by th e w ar. In 19 40, 23% of
de popul ate d, and m is e rabl e. m ach ine tool s in us e w e re l e s s th an 10 ye ars ol d. By 19 45, th e
figure h ad grow n to 62% . Th e indus try contracte d rapidl y afte r
Pe te r Tos h h ad a s ong cal le d "Four H undre d Ye ars ."Al th ough th e 19 45, and w oul d probabl y h ave gone into a de pre s s ion, h ad itnot
w h ite w ork ing cl as s h as s uffe re d noth ing l ik e th e brutal ity ofbl ack re turne d to w artim e l
e ve l s ofoutputduring K ore a and re m aine d
sl ave ry, th e re h as ne ve rth e l e s s be e n a "four h undre d ye ars " of th atw ay th rough outth e Col d W ar. Th e R & D com pl e x, lik e w is e ,
oppre s s ion for al lofus unde r th e s ys te m ofs tate capital is m w as a cre ation ofth e w ar. Be tw e e n 19 39 and 19 45, th e s h are of
e s tabl is h e d in th e s e ve nte e nth ce ntury. Eve r s ince th e birth ofth e AT& T re s e arch e xpe nditure s m ade up ofgove rnm e ntcontracts
firs ts tate s s ix th ous and ye ars ago, pol iticalcoe rcion h as al low e d e xpande d from 1% to 83% . O ve r 9 0% ofth e pate nts re s ul ting
one rul ing cl as s or anoth e r to l ive offoth e r pe opl e 's labor. Buts ince from gove rnm e nt-funde d w artim e re s e arch w e re give n aw ay to
th e s e ve nte e nth ce ntury th e s ys te m ofpow e r h as be com e indus try. Th e m ode rn e l e ctronics indus try w as l arge ly a product
incre as ingl y cons cious , unifie d, and gl obalin s cal e . Th e curre nt ofW orl d W ar II and Col d W ar s pe nding (e .g., m iniaturiz ation of
s ys te m oftrans nationals tate capital is m , w ith outrivals ince th e circuits for bom b proxim ity fus e s , h igh capacity com pute rs for
col l
aps e ofth e s ovie tbure aucratic cl as s s ys te m , is a dire ct com m and and control , e tc.) [Nobl e , Force s ofProduction pp. 8-16].
outgrow th ofth e s e iz ure ofpow e r "four h undre d ye ars " ago. O rw e l l
and iffos s ilfue l s de ple tion all
ow ance s w e re re m ove d. Th e re s ul
t h ad itback w ards . Th e pas tis a "boots m as h ing a h um an face ."
w oul d be a m as s ive incre as e in s h ipping cos ts . Doe s anyone W h e th e r th e future is m ore ofth e s am e de pe nds on w h atw e do
s e rious l y be lie ve th atW al -M artcoul d continue to unde rs e l llocal now .
re taile rs , or corporate agribus ine s s coul d de s troy th e fam il
y farm ?
Ide ol
ogicalH e ge m ony
Inte l
le ctual ly h one s trigh tl
ibe rtarians fre e l
y adm itas m uch . For
e xam pl e , Tibe r M ach an w rote in Th e Fre e m an th at Ide ol ogicalh e ge m ony is th e proce s s by w h ich th e e xpl oite d com e
to vie w th e w orl d th rough a conce ptualfram e w ork provide d to
"Som e pe opl e w il ls ay th ats tringe ntprote ction ofrigh ts [agains t th e m by th e ir e xpl oite rs . Itacts firs tofallto conce alcl as s confl ict
e m ine ntdom ain] w oul dl e ad to s m al lairports , atbe s t, and m any and e xpl oitation be h ind a s m ok e s cre e n of"nationalunity" or
cons traints on cons truction. O fcours e --butw h at's s o w rong w ith "ge ne ralw e l fare ." Th os e w h o pointto th e rol e ofth e s tate as
th at?Pe rh aps th e w ors tth ing aboutm ode rn indus triall ife h as guarantor ofcl as s privil e ge are de nounce d, in th e atricaltone s of
be e n th e pow e r ofpol iticalauth oritie s to grants pe cialprivil e ge s to m oraloutrage , for "cl as s w arfare ." Ifanyone is s o unpardonabl y
s om e e nte rpris e s to viol ate th e righ ts ofth ird partie s w h os e "e xtre m is t" as to de s cribe th e m as s ive foundation ofs tate
pe rm is s ion w oul d be too e xpe ns ive to obtain. Th e ne e d to obtain inte rve ntion and s ubs idy upon w h ich corporate capital is m re s ts ,
th atpe rm is s ion w oul d inde e d s e rious ly im pe de w h atm os t h e is s ure to be re buk e d for "M arxis tcl as s w ar rh e toric" (Bob
e nvironm e ntal is ts s e e as ram pant--inde e d re ck l e s s -- Novak ), or "robbe r baron rh e toric" (Tre as ury Se cre tary O 'Ne ill
).
indus trial iz ation. Th e s ys te m ofprivate prope rty righ ts --in w h ich ...
al l... k inds of... h um an activity m us tbe conducte d w ith in one 's ow n Th e ide ol ogicalfram e w ork of"nationalunity" is tak e n to th e point
re al m e xce ptw h e re coope ration from oth e rs h as be e n gaine d th at"th is country," "s ocie ty," or "our s ys te m ofgove rnm e nt" is s e t
vol untaril y--is th e gre ate s tm ode rator ofh um an as pirations .... In up as an obje ctofgratitude for "th e fre e dom s w e e njoy." O nl y th e
s h ort, pe opl e m ay re ach goal s th e y are n'tabl e to re ach w ith th e ir m os tunpatriotic notice th atour l ibe rtie s , far from be ing grante d to
ow n re s ource s onl y by convincing oth e rs , th rough argum e nts and us by a ge ne rous and be ne vol e ntgove rnm e nt, w e re w on by pas t
fair e xch ange s , to coope rate " ["O n Airports and IndividualRigh ts "]. re s is tance agains tth e s tate . Ch arte rs and bil ls ofrigh ts w e re not
grants from th e s tate , butw e re force d on th e s tate from be l ow .
Th e l ogjam s and bottl e ne ck s in th e trans portation s ys te m are an
ine vitabl e re s ultofs ubs idie s . Th os e w h o de bate th e re as on for Ifour l ibe rtie s be long to us by righ tofbirth , as a m oralfactof
pl ane s s tack e d up atO 'H are airport, or de cry th e factth at nature , itfol low s th atw e ow e th e s tate no de btofgratitude for not
h igh w ays and bridge s are de te riorating s e ve raltim e s fas te r th an violating th e m , any m ore th an w e ow e our th ank s to anoth e r
re pairs are be ing budge te d, ne e d onl y re ad an e conom ics 101 individualfor re fraining from robbing or k il l
ing us . Sim ple logic
te xt. M ark e tprice s are s ignal s th atre l ate s upply to de m and. W h e n im plie s th at, rath e r th an be ing grate fulto "th e fre e s tcountry on
s ubs idie s dis tortth e s e s ignal s , th e cons um e r doe s notpe rce ive e arth ," w e s h oul d rais e h e l
le ve ry tim e itinfringe s on our l ibe rty.
th e re alcos tofproducing th e goods h e cons um e s . Th e "fe e dback Afte r al l, th at's h ow w e gotour l ibe rty in th e firs tpl
ace . W h e n
loop" is brok e n, and de m ands on th e s ys te m ove rw h e l m itbe yond anoth e r individualputs h is h and in our pock e tto e nrich h im s e l fat
its ability to re s pond. W h e n pe opl e don'th ave to pay th e re alcos t our e xpe ns e , our naturalins tinctis to re s is t. Butth ank s to
ofs om e th ing th e y cons um e , th e y are n'tve ry care fulaboutonl y patriotis m , th e rul ing cl as s is abl e to trans form th e ir h and in our
us ing w h atth e y ne e d. pock e tinto "s ocie ty" or "our country."

Itis inte re s ting th ate ve ry m ajor antitrus taction in th is ce ntury h as Th e re ligion ofnationalunity is m os tpath ol ogicalin re gard to
invol ve d e ith e r s om e bas ic e ne rgy re s ource , or s om e form of "de fe ns e " and fore ign pol
icy. Th e m anufacture offore ign cris is
and w ar h ys te ria h as be e n us e d s ince th e be ginning ofh is tory to true ope rating e xpe ns e s . Ch om s k y de s cribe d th is s tate capital
is t
s uppre s s th re ats to cl as s rul
e . Th e crook e d pol iticians m ay w ork for unde rw riting ofs h ipping cos ts q uite accurate l y:
th e "s pe cialinte re s ts " dom e s ticall
y, butw h e n th os e s am e
pol iticians e ngine e r a w ar itis a m atte r ofl oyal ty to "our country." O ne w e l l
-k now n factabouttrade is th atit's h igh l y s ubs idiz e d w ith
h uge m ark e t-dis torting factors .... Th e m os tobvious is th ate ve ry
Th e Ch airm an ofth e JCS, in dis cus s ing th e "de fe ns e " pos ture , w il l form oftrans portis h igh l y s ubs idiz e d.... Since trade natural l
y
re fe r w ith a s traigh tface to "nationals e curity th re ats " face d by th e re q uire s trans port, th e cos ts oftrans porte nte r into th e cal cul ation
U. S., and de s cribe th e arm e d force s ofs om e officiale ne m y l ik e ofth e e fficie ncy oftrade . Butth e re are h uge s ubs idie s to re duce
Ch ina as far be yond "l e gitim ate de fe ns ive re q uire m e nts ." Th e th e cos ts oftrans port, th rough m anipul ation ofe ne rgy cos ts and
q uick e s tw ay to putone s e l fbe yond th e pal e is to pointoutth atal l al ls orts ofm ark e t-dis torting functions ["H ow Fre e is th e Fre e M ark e t?"].
th e s e "th re ats " invol
ve w h ats om e country on th e oth e r s ide ofth e
w orl d is doing w ith in a h undre d m il e s ofits ow n borde r. Anoth e r Eve ry w ave ofconce ntration ofcapitalh as fol low e d a publ icly
offe ns e agains tfath e rl and w ors h ip is to judge th e actions ofth e s ubs idiz e d infras tructure s ys te m ofs om e s ort. Th e national
Unite d State s , in its gl obalope rations to k e e p th e Th ird W orl d s afe rail road s ys te m , builtlarge ly on fre e or be l ow -cos tl and donate d
for ITT and Unite d FruitCom pany, by th e s am e s tandard of by th e gove rnm e nt, w as fol low e d by conce ntration in h e avy
"le gitim ate de fe ns ive re q uire m e nts " applie d to Ch ina. indus try, pe troch e m ical s , and finance . Th e ne xtm ajor
infras tructure proje cts w e re th e nationalh igh w ay s ys te m , s tarting
In th e officialide ol ogy, Am e rica's w ars by de finition are al w ays w ith th e s ys te m ofde s ignate d nationalh igh w ays in th e 19 20s and
fough t"for our l ibe rtie s ," to "de fe nd our country," or in th e s m arm y cul m inating w ith Eis e nh ow e r's inte rs tate s ys te m ;and th e civil
w orl d ofM audl in Al brigh t, a s e l fl
e s s de s ire to prom ote "pe ace and aviation s ys te m , buil tal m os te ntire ly w ith fe de ralm one y. Th e
fre e dom " in th e w orl d. To s ugge s tth atth e -re alde fe nde rs ofour re s ultw as m as s ive conce ntration in re tail , agricul ture , and food
libe rtie s took up arm s agains tth e gove rnm e nt, or th atth e national proce s s ing.
s e curity s tate is a gre ate r th re atto our l ibe rtie s th an any fore ign
e ne m y w e h ave e ve r face d, is unforgive abl e . Above al l
, good Th e th ird s uch proje ctw as th e infras tructure ofth e w orl dw ide
Am e ricans don'tnotice al lth os e m ilitary advis e rs te ach ing de ath w e b, original ly buil tby th e Pe ntagon. Itpe rm its , for th e firs ttim e ,
s q uads h ow to h ack offth e face s ofunion organiz e rs and l e ave dire ction ofgl obalope rations in re altim e from a s ingl e corporate
th e m in ditch e s , or to prope rl y us e pl ie rs on a dis s ide nt's te s ticl
es. h e adq uarte rs , and is acce l e rating th e conce ntration ofcapitalon
W ar crim e s are onl y com m itte d by de fe ate d pow e rs . (Butas th e a gl obals cal e . To q uote Ch om s k y again, "Th e
Naz is l e arne d in 19 45, une m pl oye d w ar crim inal s can us ual ly find te le com m unications re vol ution... is ... anoth e r s tate com pone ntof
w ork w ith th e ne w h e ge m onic pow e r.) th e inte rnationale conom y th atdidn'tde ve l op th rough private
capital , butth rough th e publ ic paying to de s troy th e m s e lve s ...."
Afte r a ce ntury and a h al fofpatriotic indoctrination by th e s tatis t [Cl
as s W arfare p. 40].
e ducation s ys te m , Am e ricans h ave th orough l y inte rnal iz e d th e "l
ittl
e
re d s ch ool h ous e " ve rs ion ofAm e rican h is tory. Th is auth oritarian Th e ce ntraliz e d corporate e conom y de pe nds for its e xis te nce on
pie ty is s o diam e trical ly oppos e d to th e be lie fs ofth os e w h o took up a s h ipping price s ys te m w h ich is artificial
ly dis torte d by
arm s in th e Re vol ution th atth e citiz e nry h as l arge ly forgotte n w h at gove rnm e ntinte rve ntion. To ful ly gras p h ow de pe nde ntth e
itm e ans to be Am e rican. In fact, th e auth e ntic principl e s of corporate e conom y is on s ocial iz ing trans portation and
Am e ricanis m h ave be e n s tood on th e ir h e ad. Tw o h undre d ye ars com m unications cos ts , im agine w h atw oul d h appe n iftruck and
ago, s tanding arm ie s w e re fe are d as a th re atto l ibe rty and a aircraftfue lw e re taxe d e nough to pay th e ful lcos tof
bre e ding ground for auth oritarian pe rs onal itie s ;cons cription w as m ainte nance and ne w buil ding cos ts on h igh w ays and airports ;
m onopol y royal tie s ofth e TNCs w h il s tcurbing th e pote ntial as s ociate d w ith th e tyranny ofCrom w e l l;w age labor w as th ough t
de ve lopm e ntofTh ird W orl d te ch nology." O nly one pe rce ntof to be incons is te ntw ith th e inde pe nde nts piritofa fre e citiz e n.
pate nts w orl dw ide are ow ne d in th e Th ird W orl d. O fpate nts Today, tw o h undre d ye ars l ate r, Am e ricans h ave be e n s o
grante d in th e 19 70s by Th ird W orl d countrie s , 84% w e re fore ign- Prus s ianiz e d by s ixty ye ars ofa garris on s tate and "w ars " agains t
ow ne d. Butfe w e r th an 5% offore ign-ow ne d pate nts w e re actual ly one inte rnale ne m y or anoth e r, th atth e y are conditione d to
us e d in production. As w e s aw be fore , th e purpos e ofow ning a ge nufl e ctatth e s igh tofa uniform . Draftdodge rs are e q uival e nt
pate ntis notne ce s s aril y to us e it, butto pre ve ntanyone e l s e from to ch ild m ol e s te rs . M os tpe opl e w ork for s om e ce ntraliz e d
us ing it[op. cit. pp. 29 -30]. corporate or s tate bure aucracy, w h e re as a m atte r ofcours e th e y
are e xpe cte d to obe y orde rs from s upe riors , w ork unde r cons tant
Ragh avan s um m e d up nice l
y th e e ffe cton th e Th ird W orl
d: s urve ill
ance , and e ve n pis s in a cup on com m and.

"Give n th e vas toutl ays in R and D and inve s tm e nts , as w e l las th e During w artim e , itbe com e s unpatriotic to criticiz e or q ue s tion th e
s h ortlife cycl e ofs om e ofth e s e products , th e l e ading Indus trial gove rnm e ntand dis s e ntis ide ntifie d w ith dis l oyalty. Abs ol ute faith
Nations are trying to pre ve nte m e rge nce ofcom pe tition by and obe die nce to auth ority is a l itm us te s tof"Am e ricanis m ."
control ling... th e fl ow s ofte ch nology to oth e rs . Th e Uruguay round Fore ign w ar is a ve ry us e fultoolfor m anipul ating th e popul ar
is be ing s ough tto be us e d to cre ate e xportm onopol ie s for th e m ind and k e e ping th e dom e s tic popul ation unde r control . W ar is
products ofIndus trialNations , and bl ock or s low dow n th e ris e of th e e as ie s tw ay to s h iftvas t, unaccountabl e ne w pow e rs to th e
com pe titive rival s , particularly in th e ne w l
y indus trializ ing Th ird State . Pe opl e are m os tuncritical ly obe die ntatth e ve ry tim e th e y
W orl d countrie s . Atth e s am e tim e th e te ch nol ogie s ofs e ne s ce nt ne e d to be m os tvigil ant.
indus trie s ofth e north are s ough tto be e xporte d to th e South
unde r conditions ofas s ure d re ntie r incom e " [op. cit. p. 9 6]. Th e gre ate s tirony is th at, in a country founde d by re vol ution,
"Am e ricanis m " is de fine d as re s pe cting auth ority and re s is ting
Corporate propagandis ts pious l y de nounce anti-gl obal is ts as "s ubve rs ion." Th e Re vol ution w as a re vol ution inde e d, in w h ich
e ne m ie s ofth e Th ird W orl d, s e e k ing to us e trade barrie rs to th e dom e s tic pol iticalins titutions ofth e col onie s w e re forcibl y
m aintain an affl ue ntW e s te rn l ife s tyl e atth e e xpe ns e ofth e poor ove rth row n. Itw as , in m any tim e s and pl ace s , a civilw ar be tw e e n
nations . Th e above m e as ure s --trade barrie rs --to pe rm ane ntl y cl as s e s . Butas Vol tairine de Cl e yre w rote a ce ntury ago in
s uppre s s Th ird W orl d te ch nol ogy and k e e p th e South as a big "Anarch is m and Am e rican Traditions ," th e ve rs ion in th e h is tory
s w e ats h op, give th e lie to th is "h um anitarian" conce rn. Th is is not book s is a patriotic confl ictbe tw e e n our "Founding Fath e rs " and
a cas e ofdiffe ring opinions , or ofs ince re l y m is tak e n unde rs tanding a fore ign e ne m y. Th os e w h o can s til lq uote Je ffe rs on on th e righ t
ofth e facts . Se tting as ide fal s e s ubtl e tie s , w h atw e s e e h e re is ofre vol ution are re l e gate d to th e "e xtre m is t" fringe , to be rounde d
pure e vilatw ork --O rw e l l's "boots tam ping on a h um an face up in th e ne xtw ar h ys te ria or re d s care .
fore ve r." Ifany arch ite cts ofth is pol icy be l ie ve itto be for ge ne ral
h um an w e l l-be ing, itonl y s h ow s th e capacity ofide ol ogy to jus tify Th is ide ol ogicalcons tructofa unifie d "nationalinte re s t" incl ude s
th e oppre s s or to h im s e l
fand e nabl e h im to s l e e p atnigh t. th e fiction ofa "ne utral " s e tofl aw s , w h ich conce al s th e
e xpl oitative nature ofth e s ys te m ofpow e r w e l ive unde r. Unde r
Infras tructure corporate capital is m th e re l ations h ips ofe xpl oitation are
m e diate d by th e pol iticals ys te m to an e xte ntunk now n unde r
Spe nding on trans portation and com m unications ne tw ork s from pre vious cl as s s ys te m s . Unde r ch atte ls l ave ry and fe udal is m ,
ge ne ralre ve nue s , rath e r th an from taxe s and us e r fe e s , al
low s big e xpl oitation w as concre te and pe rs onal iz e d in th e produce r's
bus ine s s to "e xte rnal
iz e its cos ts " on th e publ
ic, and conce alits re lations h ip w ith h is m as te r. Th e s lave and pe as antk ne w e xactl y
w h o w as s cre w ing th e m . Th e m ode rn w ork e r, on th e oth e r h and,
fe e l
s a painfulpounding s e ns ation, buth as onl y a vague ide a Th e provis ions for biote ch are re al ly a w ay ofincre as ing trade
w h e re itis com ing from . barrie rs , and forcing cons um e rs to s ubs idiz e th e TNCs e ngage d
in agribus ine s s . Th e U.S. s e e k s to appl y pate nts to ge ne tical l
y-
Be s ide s its function ofm as k ing th e rul ing clas s inte re s ts be h ind a m odifie d organis m s , e ffe ctive l y pirating th e w ork ofge ne rations of
facade of"ge ne ralw e l fare ," ide ol
ogicalh e ge m ony al s o m anufacture s Th ird W orl d bre e de rs by is olating be ne ficialge ne s in traditonal
divis ions be tw e e n th e rul e d. Th rough cam paigns agains t"w e l fare varie tie s and incorporating th e m in ne w GM O s --and m aybe e ve n
ch e ats " and "de adbe ats ," and de m ands to "ge ttough on crim e ," e nforcing pate ntrigh ts agains tth e traditionalvarie ty w h ich w as
th e ruling cl as s is abl e to ch anne lth e h os tility ofth e m iddl e and th e s ource ofth e ge ne tic m ate rial . For e xam pl e M ons anto h as
w ork ing cl as s e s agains tth e unde rcl as s . atte m pte d to us e th e pre s e nce ofth e ir DNA in a crop as prim a
facie e vide nce ofpirating--w h e n itis m uch m ore l ik e l
y th atth e ir
Es pe cial ly naus e ating is th e ph e nom e non of"bil l
ionaire popul is m ." varie ty cros s -pol linate d and contam inate d th e farm e r's crop
Cal l
s for bank ruptcy and w e l fare "re form ," and for w ars on crim e , agains th is w il l. Th e Pink e rton age ncy, by th e w ay, pl ays a
are dre s s e d up in ps e udo-popul is trh e toric, ide ntifying th e le ading rol e in inve s tigating s uch ch arge s --th at's righ t, th e s am e
unde rcl as s as th e ch ie fparas ite s w h o fe e d offth e produce rs ' l abor. fol k s w h o h ave be e n bre ak ing s trik e s and k ick ing organiz e rs
In th e ir "aw , s h uck s " s ym bol ic unive rs e , you'd th ink Am e rica w as a dow n s tairs for th e pas tce ntury. Eve n jack -boote d th ugs h ave to
Re ade rs Dige s t/Norm an Rock w e l lw orl d w ith noth ing buth ard- dive rs ify to m ak e itin th e gl obale conom y.
w ork ing s m al lbus ine s s m e n and fam il y farm e rs , on th e one h and,
and w e l fare ch e ats , de adbe ats , union bos s e s and bure aucrats on Th e de ve l ope d w orld h as pus h e d particul arl y h ard to prote ct
th e oth e r. From l is te ning to th e m , you'd ne ve r s us pe ctth atm ul ti- indus trie s re lying on or producing "ge ne ric te ch nol ogie s ," and to
bil l
ionaire s or gl obalcorporations e ve n e xis t, l e talone th atth e y re s trictdiffus ion of"dualus e " te ch nol ogie s . Th e U. S.-Japane s e
m igh ts tand to be ne fitfrom s uch "popul is m ." trade agre e m e nton s e m i-conductors , for e xam pl e , is a "carte l
-
lik e , 'm anage d trade ' agre e m e nt." So m uch for "fre e trade ." [Die te r
In th e re alw orl d, corporations are th e bigge s tcl ie nts ofth e w e l fare Erns t, "Te ch nol
ogy, Econom ic Se curity and Late com e r Idus trial
iz ation," in
s tate , th e bigge s tbank ruptcie s are corporate ch apte r e l e ve n Ragh avan Pp. 39 -40].
filings , and th e w ors tcrim e s are com m itte d in corporate s uite s
rath e r th an on th e s tre e ts . Th e re alrobbe ry ofth e ave rage Pate ntl aw traditional ly re q uire d a h ol de r to w ork th e inve ntion in
produce r cons is ts ofprofitand us ury, e xtorte d onl y w ith th e h e l
p of a country in orde r to re ce ive pate ntprote ction. U.K . l aw al l
ow e d
th e s tate --th e re al"big gove rnm e nt" on our back s . Butas l ong as com pul s ory lice ns ing afte r th re e ye ars ifan inve ntion w as not
th e w ork ing cl as s and th e unde rcl as s are bus y figh ting e ach oth e r, be ing w ork e d, or be ing w ork e d ful l
y, and de m and w as be ing m e t
th e y w on'tnotice w h o is re al l
y robbing th e m . "to a s ubs tantiale xte nt" by im portation;or w h e re th e e xport
m ark e tw as notbe ing s uppl ie d be caus e ofth e pate nte e 's re fus al
"Th e oppre s s or's m os tpow e rfulw e apon is th e m ind ofth e to grantl ice ns e s on re as onabl e te rm s [Ragh avan pp. 120, 138].
oppre s s e d."
Th e ce ntralm otivation in th e GATT inte l le ctualprope rty re gim e ,
Th e M one y M onopol
y h ow e ve r, is to pe rm ane ntl
yl ock in th e col l
e ctive m onopol y of
advance d te ch nol ogy by TNCs , and pre ve ntinde pe nde nt
In e ve ry s ys te m ofcl as s e xpl oitation, a rul ing clas s controls acce s s com pe tition from e ve r aris ing in th e Th ird W orl d. Itw ould, as
to th e m e ans ofproduction in orde r to e xtracttribute from l abor. M artin K h or K ok Pe ng w rite s , "e ffe ctive l
y pre ve ntth e diffus ion of
Unde r capital is m , acce s s to capitalis re s tricte d by th e m one y te ch nology to th e Th ird W orl d, and w oul d tre m e ndous l y incre as e
"bough tup in l arge num be rs to s uppre s s com pe tition," w h ich al so m onopol y, by w h ich th e s tate or bank ing s ys te m is give n a
re s ul
te d in "th e s uppre s s ion ofinve ntion its e l
f." [Am e rica by De s ign, m onopol y on th e m e dium ofe xch ange , and al te rnative m e dia of
pp. 84-109 ]. Edw in Prindl e , a corporate pate ntl aw ye r, w rote in 19 06: e xch ange are proh ibite d. Th e m one y m onopol y als o incl
ude s
e ntry barrie rs agains tcoope rative bank s and proh ibitions agains t
"Pate nts are th e be s tand m os te ffe ctive m e ans ofcontrol ling private is s uance ofbank note s , by w h ich acce s s to finance capital
com pe tition. Th e y occas ional ly give abs olute com m and ofth e is re s tricte d and inte re s trate s are k e ptartificial l
y h igh .
m ark e t, e nabl
ing th e ir ow ne r to nam e th e price w ith outre gard to
th e cos tofproduction.... Pate nts are th e onl yl e galform of Jus tin pas s ing, w e m igh tm e ntion th e m onum e ntalh ypocricy of
abs ol ute m onopol y" [Am e rica by De s ign p. 9 0]. th e re gul ation ofcre ditunions in th e Unite d State s , w h ich re q uire
th atth e ir m e m be rs h ip m us ts h are s om e com m on bond, l ik e
Pate nts pl aye d a k e y rol e in th e form ation ofth e e l e ctrical w ork ing for th e s am e e m pl oye r. Im agine th e outrage ifIGA and
appl iance , com m unications , and ch e m icalindus trie s . G. E. and Safe w ay l obbie d for a nationall aw to proh ibitgroce ry co-ops
W e s tingh ous e e xpande d to dom inate th e e l e ctricalm anufacturing unl e s s th e m e m be rs al lw ork e d for th e s am e com pany! O ne ofth e
m ark e tatth e turn ofth e ce ntury l arge ly th rough pate ntcontrol . In m os tnotabl e s upporte rs ofth e s e l aw s is Ph ilGram m , th at
19 06 th e y curtail e d th e pate ntl itigation be tw e e n th e m by pool ing re now ne d "fre e m ark e te e r" and e conom ics profe s s or--and
th e ir pate nts . AT& T al s o e xpande d "prim aril y th rough s trate gie s of fore m os tam ong th e bank ing indus try's w h ore s in Congre s s .
pate ntm onopol y." Th e Am e rican ch e m icalindus try w as m arginal
until19 17, w h e n Attorne y-Ge ne ralM itch e l lPal m e r s e iz e d Ge rm an Individual is tand m utual is tanarch is ts lik e W il liam Gre e ne [M utual
pate nts and dis tribute d th e m am ong th e m ajor Am e rican ch e m ical Bank ing], Be njam in Tuck e r [Ins te ad ofa Book ), and J. B. Robe rts on
com panie s . DuPontgotl ice ns e s on 300 ofth e 735 pate nts [Am e rica [Th e Econom ics ofLibe rty] vie w e d th e m one y m onopol y as ce ntralto
by De s ign pp. 10, 16]. th e capital is ts ys te m ofprivil e ge . In a ge nuine l y fre e bank ing
m ark e t, any group ofindividual s coul d form a m utualbank and
Pate nts are al s o be ing us e d on a gl obals cal e to l
ock th e is s ue m one tiz e d cre ditin th e form ofbank note s agains tany form
trans nationalcorporations into a pe rm ane ntm onopol y of ofcol l
ate ralth e y ch os e , w ith acce ptance ofth e s e note s as te nde r
productive te ch nol ogy. Th e s ingl e m os ttotal itarian provis ion ofth e be ing a condition ofm e m be rs h ip. Gre e ne s pe cul ate d th ata
Uruguay Round is probabl y its "inte l
le ctualprope rty" provis ions . m utualbank m igh tch oos e to h onor notonl y m ark e table prope rty
GATT h as e xte nde d both th e s cope and duration ofpate nts far as col late ral , butth e "ple dging ... [of] future production." [p. 73]. Th e
be yond anyth ing e ve r e nvis ione d in originalpate ntl aw . In Engl and, re s ultw oul d be a re duction in inte re s trate s , th rough com pe tition,
pate nts w e re original ly for fourte e n ye ars --th e tim e ne e de d to train to th e cos tofadm inis trative ove rh e ad--l e s s th an one pe rce nt.
tw o journe ym e n in s ucce s s ion (and by anal ogy, th e tim e ne ce s s ary
to go into production and re ap th e initialprofitfor original ity). By Abundantch e ap cre ditw oul d dras tical
ly al
te r th e bal
ance of
th ats tandard, give n th e s h orte r training tim e s re q uire d today, and pow e r be tw e e n capitaland l
abor, and re turns on l abor w oul
d
th e s h orte r l
ife s pan ofte ch nol ogy, th e pe riod ofm onopol y s h ould re pl
ace re turns on capitalas th e dom inantform ofe conom ic
be s h orte r. Ins te ad, th e U.S. s e e k s to e xte nd th e m to fifty ye ars activity. According to Robins on,
[Ragh avan, Re col oniz ation pp. 119 -120]. According to M artin K h or K ok
Pe ng, th e U.S. is by far th e m os tabs ol utis tofth e participants in "Upon th e m onopol y rate ofinte re s tfor m one y th atis ... force d
th e Uruguay Round. Unl ik e th e Europe an Com m unity, itw oul d upon us by l aw , is bas e d th e w h ol
e s ys te m ofinte re s tupon
re q uire pate ntprote ction for pl antand anim alvarie tie s , and for capital , th atpe rm e ate s allm ode rn bus ine s s . W ith fre e bank ing,
biol ogicalproce s s e s for anim aland pl antprote ction [Th e Uruguay inte re s tupon bonds ofal lk inds and divide nds upon s tock w oul d
Round and Th ird W orl
d Sove re ignty p. 28]. fallto th e m inim um bank inte re s tch arge . Th e s o-cal le d re ntof
h ous e s ... w oul
d fal
lto th e cos tofm ainte nance and re pl
ace m e nt. atgove rnm e nte xpe ns e . And Sch e re r h im s e lfcite d e vide nce to
th e contrary. Th e re putation advantage for be ing th e firs tinto a
Al lth atpartofth e productw h ich is now tak e n by inte re s tw oul d m ark e tis cons ide rabl e . For e xam ple in th e l
ate 19 70s , th e
be long to th e produce r. Capital , h ow e ve r... de fine d, w ould s tructure ofth e indus try and pricing be h avior w as found to be ve ry
practical ly ce as e to e xis tas an incom e producing fund, for th e s im il
ar be tw e e n drugs w ith and th os e w ith outpate nts . Be ing th e
s im ple re as on th atifm one y, w h e re w ith to buy capital , could be firs tm ove r w ith a non-pate nte d drug al l
ow e d a com pany to
obtaine d for one -h al fofone pe r ce nt, capitalits e l fcoul d com m and m aintain a 30% m ark e ts h are and to ch arge pre m ium price s .
no h igh e r price "[pp. 80-81].
Th e injus tice ofpate ntm onopol ie s is e xace rbate d by gove rnm e nt
And th e re s ul tw ould be a dras tical ly im prove d bargaining pos ition funding ofre s e arch and innovation, w ith private indus try re aping
for te nants and w ork e rs agains tth e ow ne rs ofl and and capital . m onopol y profits from te ch nol ogy itdidn'ts pe nd a pe nny to
According to Gary El k in, Tuck e r's fre e m ark e tanarch is m carrie d de ve lop. In 19 9 9 , e xte nding th e re s e arch and e xpe rim e ntation tax
ce rtain inh e re ntl
ibe rtarian s ocial is tim plications : cre ditw as , along w ith e xte ns ions ofa num be r ofoth e r corporate
tax pre fe re nce s , cons ide re d th e m os turge ntbus ine s s ofth e
It's im portantto note th atbe caus e ofTuck e r's propos alto incre as e Congre s s ionall e ade rs h ip. H as te rt, w h e n as k e d ifany e l e m e nts of
th e bargaining pow e r ofw ork e rs th rough acce s s to m utualcre dit, th e tax billw e re e s s e ntial, s aid: "I th ink th e [tax pre fe re nce ]
h is s o-cal l
e d Individualis tanarch is m is notonl y com patibl e w ith e xte nde rs are s om e th ing w e 're going to h ave to w ork on." W ays
w ork e rs ' controlbutw oul d in factprom ote it. For ifacce s s to m utual and M e ans Ch air Bil lArch e r adde d, "be fore th e ye ar is out... w e
cre ditw e re to incre as e th e bargaining pow e r ofw ork e rs to th e w illdo th e e xte nde rs in a ve ry s trippe d dow n bil lth atdoe s n't
e xte ntth atTuck e r cl aim e d itw oul d, th e y w oul
d th e n be able to (1) incl ude anyth ing e l s e ."A five -ye ar e xte ns ion ofth e re s e arch and
de m and and ge tw ork pl ace de m ocracy, and (2) poolth e ir cre ditbuy e xpe rim e ntation cre dit(re troactive to 1 Jul y 19 9 9 ) w as e xpe cte d
and ow n com panie s col le ctive l
y. to cos t$13.1 bil lion. (Th atcre ditm ak e s th e e ffe ctive tax rate on R
& D s pe nding l e s s th an z e ro.) [Citiz e ns for Tax Jus tice , GO P Le ade rs
Th e bank ing m onopol y w as notonly th e "l
ynch pin ofcapital is m ," Dis til
lEs s e nce ofTax Pl
an].
butal s o th e s e e d from w h ich th e l
andl ord's m onopol y gre w . W ith out
a m one y m onopol y, th e price ofland w oul d be m uch low e r, and Th e Gove rnm e ntPate ntPol icy Actof19 80, w ith 19 84 and 19 86
prom ote "th e proce s s ofre ducing re nts tow ard z e ro." [Gary El k in, am e ndm e nts , al l
ow e d private indus try to k e e p pate nts on
"Be njam in Tuck e r--Anarch is tor Capital
is t"]. products de ve l ope d w ith gove rnm e ntR & D m one y--and th e n to
ch arge te n, tw e nty, or forty tim e s th e cos tofproduction. For
Give n th e w ork e r's im prove d bargaining pos ition, "capital is ts ' abil
ity e xam pl e , AZ T w as de ve lope d w ith gove rnm e ntm one y and in th e
to e xtracts urpl us val ue from th e l abor ofe m pl oye e s w oul d be publ ic dom ain s ince 19 64. Th e pate ntw as give n aw ay to
el im inate d or atle as tgre atl y re duce d." [Gary El k in, M utualBank ing]. As Burrough s W e l lcom e Corp. [Ch ris Le w is , "Publ
ic As s e ts , Private Profits ].
com pe ns ation for l abor approach e d val ue -adde d, re turns on capital
w e re drive n dow n by m ark e tcom pe tition, and th e val ue of As ifth e de ck w e re nots ufficie ntl
y s tack e d al
re ady, th e
corporate s tock cons e q ue ntl y pl um m e te d, th e w ork e r w oul d ph arm ace uticalcom panie s in 19 9 9 actual lylobbie d Congre s s to
be com e a de facto co-ow ne r ofh is w ork pl ace , e ve n ifth e com pany e xte nd ce rtain pate nts by tw o ye ars by a s pe cialactofprivate l aw
re m aine d nom inal l
y s tock h ol
de r-ow ne d. [Be njam in Grove , "Gibbons back s drug-m onopol
y bil
l"].

Ne ar-z e ro inte re s trate s w oul

d incre as e th e inde pe nde nce ofl
abor Pate nts h ave be e n us e d th rough outth e tw e ntie th ce ntury "to
in al
ls orts ofinte re s ting w ays . For one th ing, anyone w ith a tw e nty- circum ve ntantitruts tlaw s ," according to David Nobl e . Th e y w e re
com pe titive s pur for furth e r re s e arch " be caus e incre m e ntal ye ar m ortgage at8% now coul d, in th e abs e nce ofus ury, pay it
innovation bas e d on oth e rs ' pate nts is proh ibite d, and be caus e th e offin te n ye ars . M os tpe opl e in th e ir 30S w oul d h ave th e ir
h olde r can "re s ton h is laure ls for th e e ntire pe riod ofth e pate nt," h ous e s paid off. Be tw e e n th is and th e none xis te nce ofh igh -
"w ith no fe ar ofa com pe titor im proving h is inve ntion."And th e y inte re s tcre ditcard de bt, tw o ofth e gre ate s ts ource s ofanxie ty
h am pe r te ch nicalprogre s s be caus e "m e ch anicalinve ntions are to k e e p one 's job atany cos tw oul d dis appe ar. In addition, m any
dis cove rie s ofnaturall aw rath e r th an individualcre ations , and w ork e rs w oul d h ave l arge s avings ("go to h e l lm one y").
h e nce s im il
ar inde pe nde ntinve ntions occur al lth e tim e . Th e Significantnum be rs w oul d re tire in th e ir fortie s or fiftie s , cut
s im ultane ity ofinve ntions is a fam il iar h is toricalfact." [op. cit. pp. 655, back to part-tim e , or s tartbus ine s s e s ;w ith jobs com pe ting for
658-659 ]. w ork e rs , th e e ffe cton bargaining pow e r w oul d be re vol utionary.

Th e inte l le ctualprope rty re gim e unde r th e Uruguay Round of O ur h ypoth e ticalw orl d offre e cre ditin m any w ays re s e m bl es
GATT goe s far be yond traditionalpate ntl aw in s uppre s s ing th e s ituation in colonials ocie tie s . E. G. W ak e fie l d, in Vie w ofth e
innovation. O ne be ne fitoftraditionalpate ntl aw , atl e as t, w as th atit ArtofCol oniz ation, w rote ofth e unacce ptabl y w e ak pos ition of
re q uire d an inve ntion unde r pate ntto be publ is h e d. Unde r U.S. th e e m ploying cl as s w h e n s e lf-e m ploym e ntw ith one 's ow n
pre s s ure , h ow e ve r, "trade s e cre ts " w e re include d in GATT. As a prope rty w as re adil y avail able . In col onie s , th e re w as a tigh t
re s ult, gove rnm e nts w il lbe re q uire d to h e l p s uppre s s inform ation labor m ark e tand poor l abor dis cipl ine be caus e ofth e
notform al ly prote cte d by pate nts [Ragh avan, op. cit. p. 122]. abundance ofch e ap l and. "Notonl y doe s th e de gre e of
e xpl oitation ofth e w age -l aboure r re m ain inde ce ntl yl ow . Th e
And pate nts are notne ce s s ary as an ince ntive to innovate . w age -l aboure r los e s into th e bargain, al ong w ith th e re l ation of
According to Roth bard, inve ntion is re w arde d by th e com pe titive de pe nde nce , al s o th e s e ntim e ntofde pe nde nce on th e
advantage accruing to th e firs tde ve l ope r ofan ide a. Th is is borne abs te m ious capital is t."
outby F. M . Sch e re r's te s tim ony be fore th e FTC in 19 9 5 [H e arings
on Gl obaland Innovation-Bas e d Com pe tition]. Sch e re r s pok e ofa s urve y W h e re land is ch e ap and al lm e n are fre e , w h e re e ve ry one w h o
of9 1 com panie s in w h ich onl y s e ve n "accorde d h igh s ignificance s o ple as e s can obtain a pie ce ofl and for h im s e lf, notonl y is
to pate ntprote ction as a factor in th e ir R & D inve s tm e nts ." M os tof labour ve ry de ar, as re s pe cts th e l
aboure rs ' s h are ofth e
th e m de s cribe d pate nts as "th e l e as tim portantofcons ide rations ." product, butth e difficul ty is to obtain com bine d l abour atany
M os tcom panie s cons ide re d th e ir ch ie fm otivation in R & D price .
de cis ions to be "th e ne ce s s ity ofre m aining com pe titive , th e de s ire
for e fficie ntproduction, and th e de s ire to e xpand and dive rs ify th e ir Th is e nvironm e ntal s o pre ve nte d th e conce ntration ofw e al th , as
s al e s ." In anoth e r s tudy, Sch e re r found no ne gative e ffe cton R & W ak e fie ld com m e nte d: "Fe w , e ve n ofth os e w h os e l ive s are
D s pe nding as a re s ul tofcom pul s ory lice ns ing ofpate nts . A s urve y unus ual l
yl ong, can accum ul ate gre atm as s e s ofw e al th ."As a
ofU.S. firm s found th at86% ofinve ntions w oul d h ave be e n re s ult, coloniale l ite s pe titione d th e m oth e r country for im porte d
de ve l ope d w ith outpate nts . In th e cas e ofautom obil e s , office labor and for re s trictions on l and for s e ttl e m e nt. According to
e q uipm e nt, rubbe r products , and te xtil e s , th e figure w as 100% . W ak e fie ld's dis cipl e H e rm an M e rival e , th e re w as an "urge nt
de s ire for ch e ape r and m ore s ubs e rvie ntl aboure rs --for a cl as s
Th e one e xce ption w as drugs , in w h ich 60% s uppos e dl y w ould not to w h om th e capital is tm igh tdictate te rm s , ins te ad ofbe ing
h ave be e n inve nte d. I s us pe ctdis inge nuous ne s s on th e partofth e dictate d to by th e m ." [M aurice Dobb, Studie s in th e De ve l opm e ntof
re s pondants , h ow e ve r. For one th ing, drug com panie s ge tan Capital is m ;M arx, Ch apte r 33: "Th e Ne w Th e ory ofCol
onial
is m ," in Capital
unus ual ly h igh portion ofth e ir R & D funding from th e gove rnm e nt, Vol
. 1].
and m any ofth e ir m os tl ucrative products w e re de ve l ope d e ntire l
y
In addition to al lth is , ce ntralbank ing s ys te m s pe rform additional incre as e s in w age s for gre ate r job s e curity s e e m s to be
s e rvice to th e inte re s ts ofcapital . Firs tofal l, th e ch ie fre q uire m e nt re as onabl ywel ldocum e nte d. For th e bos s e s , th e h igh -te ch
offinance capital is ts is to avoid infl ation, in orde r to al l
ow e conom y is th e ne xtbe s tth ing to h igh une m pl oym e ntfor k e e ping
pre dictabl e re turns on inve s tm e nt. Th is is os te ns ibl y th e prim ary our m inds righ t. "Figh ting inflation" trans l ate s ope rational l
y to
purpos e ofth e Fe de ralRe s e rve and oth e r ce ntralbank s . Butat incre as ing job ins e curity and m ak ing w ork e rs l ess l ik e l
y to s trik e or
le as tas im portantis th e rol e ofth e ce ntralbank s in prom oting to look for ne w jobs .
w h atth e y cons ide r a "natural "le ve lofune m pl oym e nt--untilth e
19 9 0s around s ix pe r ce nt. Th e re as on is th atw h e n Pate nts
une m pl oym e ntgoe s m uch be l ow th is figure , l abor be com e s
incre as ingl y uppity and pre s s e s for be tte r pay and w ork ing Th e pate ntprivil e ge h as be e n us e d on a m as s ive s cale to prom ote
conditions and m ore autonom y. W ork e rs are w il ling to tak e a l ot conce ntration ofcapital , e re cte ntry barrie rs , and m aintain a
le s s crap offth e bos s w h e n th e y k now th e y can find a job atl e as t m onopol y ofadvance d te ch nol ogy in th e h ands ofw e s te rn
as good th e ne xtday. O n th e oth e r h and, noth ing is s o e ffe ctive in corporations . Itis h ard e ve n to im agine h ow m uch m ore
"ge tting your m ind righ t" as th e k now l e dge th atpe opl e are l ine d de ce ntral iz e d th e e conom y w oul d be w ith outit. Righ t-l
ibe rtarian
up to tak e your job. M urray Roth bard cons ide re d pate nts a fundam e ntalviol ation of
fre e m ark e tprincipl es.
Th e Cl inton "pros pe rity" is a s e e m ing e xce ption to th is principl e.
As une m pl oym e ntth re ate ne d to drop be l ow th e four pe r ce nt Th e m an w h o h as notbough ta m ach ine and w h o arrive s atth e
m ark , s om e m e m be rs ofth e Fe de ralRe s e rve agitate d to rais e s am e inve ntion inde pe nde ntl y, w ill, on th e fre e m ark e t, be
inte re s trate s and tak e offth e "infl ationary" pre s s ure by th row ing a pe rfe ctly abl e to us e and s e l lh is inve ntion. Pate nts pre ve nta m an
fe w m il l
ion w ork e rs on th e s tre e t. Butas Gre e ns pan [Te s tim ony of from us ing h is inve ntion e ve n th ough al lth e prope rty is h is and h e
Ch airm an Al an Gre e ns pan] te s tifie d be fore th e Se nate Bank ing h as nots tol e n th e inve ntion, e ith e r e xpl icitl
y or im pl icitly, from th e
Com m itte e , th e s ituation w as uniq ue . Give n th e de gre e ofjob firs tinve ntor. Pate nts , th e re fore , are grants ofe xcl us ive m onopol y
ins e curity in th e h igh -te ch e conom y, th e re w as "[a]typicalre s traint privil e ge by th e State and are invas ions ofprope rty righ ts on th e
on com pe ns ation incre as e s ." In 19 9 6, e ve n w ith a tigh tl abor m ark e t. [M an, Econom y, and State vol . 2 p. 655]
m ark e t, 46% ofw ork e rs atl arge firm s w e re fe arfulofl ayoffs --
com pare d to onl y 25% in 19 9 1, w h e n une m pl ojm e ntw as m uch Pate nts m ak e an as tronom icalprice diffe re nce . Untilth e e arl y
h igh e r. 19 70s , for e xam ple , Italy did notre cogniz e drug pate nts . As a
re s ult, Roch e Products ch arge d th e Britis h nationalh e al th a price
Th e re l uctance ofw ork e rs to l e ave th e ir jobs to s e e k oth e r ove r 40 tim e s gre ate r for pate nte d com pone nts ofLibrium and
e m pl oym e ntas th e l abor m ark e ttigh te ne d h as provide d furth e r Val ium th an ch arge d by com pe titors in Italy [Ragh avan, Re col
oniz ation
e vide nce ofs uch conce rn, as h as th e te nde ncy tow ard l onge r p. 124].
labor union contracts . For m any de cade s , contracts rare l y
e xce e de d th re e ye ars . Today, one can pointto five and s ix-ye ar Pate nts s uppre s s innovation as m uch as th e y e ncourage it.
contracts --contracts th atare com m onl y ch aracte riz e d by an Ch ak ravarth i Ragh avan pointe d outth atre s e arch s cie ntis ts w h o
e m ph as is on job s e curity and th atinvol ve onl y m ode s tw age actual ly do th e w ork ofinve nting are re q uire d to s ign ove r pate nt
incre as e s . Th e low le ve lofw ork s toppage s ofre ce ntye ars al so righ ts as a condition ofe m pl oym e nt, w h il
e pate nts and indus trial
atte s ts to conce rn aboutjob s e curity. s e curity program s pre ve nts h aring ofinform ation, and s uppre s s
com pe tition in furth e r im prove m e ntofpate nte d inve ntions . [op. cit.
Th us th e w il
lingne s s ofw ork e rs in re ce ntye ars to trade offs m al
ler p. 118] Roth bard l ik e w is e argue d th atpate nts e l
im inate "th e