The Myth of “Economic Power”

In an age of large (and often state-protected) corporations, interventionists cite “economic power” as justification for their preferred policy. But, as the late Austrian economist Murray Rothbard explains, so-called “economic power” is essentially different from state coercion.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

“Other Forms of Coercion”: Economic Power

A very common criticism of the libertarian position runs as follows: Of course we do not like violence, and libertarians perform a useful service in stressing its dangers. But you are very simpliste because you ignore the other significant forms of coercion exercised in society—private coercive power, apart from the violence wielded by the State or the criminal. The government should stand ready to employ its coercion to check or offset this private coercion.