While libertarians all agree on the need for a drastic reduction in the size and power of the state, the libertarian movement has long been divided between the anarchists, who believe that the state should be done away with entirely, and the minarchists, who wish to reduce it to a few functions regarded as essential ..
.. I agree that objective law is a good thing. But is it true that objective law can be provided only by a governmental monopoly?
.. as Austrian economists Ludwig von Mises and Friedrich A. Hayek have shown, this argument applies to the market for goods and services just as much as to the market for ideas; competition is a discovery procedure, a crucial source of information, but one whose data grow steadily less reliable as it falls under the direction and control of a centralized state. If this is true for ideas, goods, and services, why not for law as well?
But the problem is not one of evil motivations alone. Even a state run by saints would face an informational problem. Just as the most well-intentioned central planner would be unable to make objective decisions about economic production, consumption, and distribution, because the information generated by the spontaneous market order would be inaccessible to him, so without the competitive, evolutionary process through which law originated and developed before the state, a centralized legislature would be unable to make objective decisions about which legal rules and procedures work best.