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What is it?
Until yesterday, I had never heard of anarcho-capitalism. My guess would be that anarcho-capitalists believe that the gov't should also not control the military or handle disputes. Are there other differences?
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Anarcho-capitalists believe there should be no government at all.
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Another question for anarcho-capitalists:
Do you believe that capitalism is not only desirable, but is also necessary, in order to have a workable anarchist society. How do you see disputes handled? How do you prevent competing entities from sabotaging one another (by burning up your competitors factories, for example)?
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Obviously, there will be disputes, and there will be a need for dispute resolution, which can be provided by a free market. There are already private security and arbitration services in the US today.
Your questions are thouroughly addressed in Rothbard's
For a New Liberty, which happens to be available for free in its entirety on the web:
http://www.mises.org/rothbard/newliberty.asp
The specific section addressing your questions about dispute resolution:
http://www.mises.org/rothbard/newliberty11.asp