The Similarities Between Markets And Anarchism

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Anarchism is known as an ideology of a different social order built on freedom, independence and unlimited by manmade law; the principle that all types of government place on violence, and are thus immoral, destructive and pointless (Goldman, 2002, pp.254). On the other hand, markets means a group of demanders and suppliers of product or service and the organization or arrangement by which they come together to trade (Hubbard et al. 2012, pp.382). In this piece of writing, this essay will argue that markets and anarchism are not incompatible, in other words, that is, markets and anarchism are compatible. In order to support the argument, this essay will discuss the similarities between anarchism and markets in relations to human nature, social…show more content…
Market economy can be demonstrated in different means, within the concepts of non-violence because market economy is known as an economic system in which the results of households and firms act together in markets would regulate the allocation of economic resources, such as how much cost to produce a product or service, how to produce a product or service and how much cost to pay for each worker (Friedman, 1994, pp.325). In fact, it is not controlled by any central authority. Therefore, it is entirely accepted for individuals to establish and own the means of production by themselves without any restriction or involvement from the state; all the individuals would have benefits from this operation. Nevertheless, due to the different resource inputs, investment or share, individual who owns the majority of share has made a claim to become the owner; thus, it is right and it makes sense that the individual has the right to become the owners in this circumstance (Guerin, 1970, Anarchism, pp. 94). This understanding is completely different from the traditional perception that the owners invest less effort but get all the credits and benefits than the workers. Market economy, from a different perspective, involves that owner A owns the resource and majority of share and power, owner A then hires workers B, C, and D for production and manufacturing purpose; or customers E, F and G interact with owner A for…show more content…
Market economy is the outcome of not applying violence against individuals. For example, a house is a capital good. In order to build up a house, the owner must employ constructors and purchase for all materials such as cement, bricks, builders wage and other resources that is required to build a house. Even though, the house is still owned by the owners (the one who purchase for all costs). The owner possesses all the materials and equipment, moreover, when one builder settles to work for owner in exchange for something of value such as wage, a contract of service comes into existence (Goto, 1982, pp.55). Agreement is formed when an owner and a builder ‘freely’ come in into negotiation process over the terms and conditions of service, either of the owner or worker can agree or decline the conditions presented by the other party, however, with approval of an agreement imposing promised requirements and responsibilities on the parties that are officially enforceable (Goto, 1982, pp.56). This means the workers would receive their wages while the owner would receive their desired product or service. However, this system involves that the owner possesses some capital good, thus, in order to have a right to work and be compensated, rewarded or wage, the builders would need to negotiate over terms and conditions with the owner, or else either of both party would initiate power and acting
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