Counter-economics
Encyclopedia
Counter-economics is a term originally used by Samuel Edward Konkin III
and J. Neil Schulman
, libertarian
activists and theorists. Konkin defined it as "the study and/or practice of all peaceful human action which is forbidden by the State." The term is short for "counter-establishment
economics". Counter-economics was integrated by Schulman into Konkin's doctrine of agorism
, to form what they call a revolutionary variant of market anarchism
.
The term counter-economics is also used in a separate but arguably compatible sense to refer to addressing social justice and sustainability concerns in a market context, although one more generally counter-establishment rather than explicitly illegal.
In both senses, it can include non-monetary forms of exchange, such as a barter economy or a gift economy
.
, CounterCon I in 1974 and CounterCon II in 1975, both held in Cheshire, Massachusetts. Other speakers at these conferences included Robert LeFevre
, Kenneth Kalcheim, and Dennis Turner.
The first book to portray counter-economics as a strategy for achieving a libertarian society was J. Neil Schulman's 1979 novel Alongside Night
.
, postulates that the correct method of achieving a market anarchist
society is through advocacy and growth of the underground economy
or "black market" -- the "counter-economy" as Konkin put it—until such a point that the State's perceived moral authority and outright power have been so thoroughly undermined that revolutionary market anarchist legal and security enterprises are able to arise from underground and ultimately suppress government as a criminal activity (with taxation being treated as theft, war being treated as mass murder, et cetera).
According to Konkin's pamphlet Counter-Economics:
According to Konkin, counter-economics also allows for immediate self-liberation from statist controls, to whatever degree practical, by applying entrepreneurial logic to rationally decide which laws to discreetly break and when. The fundamental principle is to trade risk for profit
, although profit can refer to any gain in perceived value rather than strictly monetary gains (as a consequence of the subjective theory of value
).
Various practices of counter-economics include these voluntary practices:
at the service of people
, instead of the other way around."
According to adherents to this usage of the term, the fairness of trade can be measured by several factors:
Samuel Edward Konkin III
Samuel Edward Konkin III was the author of the New Libertarian Manifesto and a proponent of the political philosophy which he called agorism. Agorism is a leftward evolution of anarcho-capitalism, and subset of market anarchism...
and J. Neil Schulman
J. Neil Schulman
Joseph Neil Schulman is a novelist who wrote Alongside Night and The Rainbow Cadenza which both received the Prometheus Award, a libertarian science fiction award....
, libertarian
Libertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...
activists and theorists. Konkin defined it as "the study and/or practice of all peaceful human action which is forbidden by the State." The term is short for "counter-establishment
The Establishment
The Establishment is a term used to refer to a visible dominant group or elite that holds power or authority in a nation. The term suggests a closed social group which selects its own members...
economics". Counter-economics was integrated by Schulman into Konkin's doctrine of agorism
Agorism
Agorism is a political philosophy founded by Samuel Edward Konkin III and developed with contributions by J. Neil Schulman that holds as its ultimate goal bringing about a society in which all "relations between people are voluntary exchanges – a free market." The term comes from the Greek...
, to form what they call a revolutionary variant of market anarchism
Market anarchism
Free-market anarchism refers to an individualist anarchist philosophy in which monopoly of force held by government would be replaced by a competitive market of non-monopolistic organizations providing security, justice, and other defense services...
.
The term counter-economics is also used in a separate but arguably compatible sense to refer to addressing social justice and sustainability concerns in a market context, although one more generally counter-establishment rather than explicitly illegal.
In both senses, it can include non-monetary forms of exchange, such as a barter economy or a gift economy
Gift economy
In the social sciences, a gift economy is a society where valuable goods and services are regularly given without any explicit agreement for immediate or future rewards . Ideally, simultaneous or recurring giving serves to circulate and redistribute valuables within the community...
.
Origin
The first presentations of the theory of counter-economics were made by Samuel Edward Konkin III at two conferences organized by J. Neil SchulmanJ. Neil Schulman
Joseph Neil Schulman is a novelist who wrote Alongside Night and The Rainbow Cadenza which both received the Prometheus Award, a libertarian science fiction award....
, CounterCon I in 1974 and CounterCon II in 1975, both held in Cheshire, Massachusetts. Other speakers at these conferences included Robert LeFevre
Robert LeFevre
Robert LeFevre was an American libertarian businessman, radio personality, and primary theorist of autarchism.-Early life:...
, Kenneth Kalcheim, and Dennis Turner.
The first book to portray counter-economics as a strategy for achieving a libertarian society was J. Neil Schulman's 1979 novel Alongside Night
Alongside Night
Alongside Night is a Prometheus Award winning dystopian novel by science fiction writer J. Neil Schulman intended to articulate the principles of Agorism, a form of left-libertarianism created by Samuel Edward Konkin III, to whom Schulman had dedicated the work.-Introduction:It was first published...
.
Relationship with agorism
Konkin's agorism, as exposited in his New Libertarian ManifestoNew Libertarian Manifesto
The New Libertarian Manifesto is a work of agorist philosophy written by Samuel Edward Konkin III. In it, Konkin proffers various arguments of how a free society would function as well as examples of existing gray and black markets. It contains criticisms of utilizing political or violent means,...
, postulates that the correct method of achieving a market anarchist
Market anarchism
Free-market anarchism refers to an individualist anarchist philosophy in which monopoly of force held by government would be replaced by a competitive market of non-monopolistic organizations providing security, justice, and other defense services...
society is through advocacy and growth of the underground economy
Underground economy
A black market or underground economy is a market in goods or services which operates outside the formal one supported by established state power. Typically the totality of such activity is referred to with the definite article as a complement to the official economies, by market for such goods and...
or "black market" -- the "counter-economy" as Konkin put it—until such a point that the State's perceived moral authority and outright power have been so thoroughly undermined that revolutionary market anarchist legal and security enterprises are able to arise from underground and ultimately suppress government as a criminal activity (with taxation being treated as theft, war being treated as mass murder, et cetera).
According to Konkin's pamphlet Counter-Economics:
According to Konkin, counter-economics also allows for immediate self-liberation from statist controls, to whatever degree practical, by applying entrepreneurial logic to rationally decide which laws to discreetly break and when. The fundamental principle is to trade risk for profit
Financial risk
Financial risk an umbrella term for multiple types of risk associated with financing, including financial transactions that include company loans in risk of default. Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss...
, although profit can refer to any gain in perceived value rather than strictly monetary gains (as a consequence of the subjective theory of value
Subjective theory of value
The subjective theory of value is an economic theory of value that identifies worth as being based on the wants and needs of the members of a society, as opposed to value being inherent to an object....
).
Various practices of counter-economics include these voluntary practices:
- Tax evasionTax evasionTax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
- SmugglingSmugglingSmuggling is the clandestine transportation of goods or persons, such as out of a building, into a prison, or across an international border, in violation of applicable laws or other regulations.There are various motivations to smuggle...
- Drug trafficking
- Subsistence farming
- Being or hiring illegal immigrants
- Bartering and alternative currencyAlternative currencyAlternative currency is a term that refers to any currency used as an alternative to the dominant national or multinational currency systems...
use - Arms trafficking
Alternative usage
The term counter-economics is also used in a separate, though not incompatible sense to refer to addressing social justice and sustainability concerns in a market context, although one more generally counter-establishment rather than explicitly illegal. In this second sense, counter-economics has been described as "moneyMoney
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
at the service of people
People
People is a plurality of human beings or other beings possessing enough qualities constituting personhood. It has two usages:* as the plural of person or a group of people People is a plurality of human beings or other beings possessing enough qualities constituting personhood. It has two usages:*...
, instead of the other way around."
According to adherents to this usage of the term, the fairness of trade can be measured by several factors:
- The extent to which workers have a direct and ongoing say minimally in their working conditions, hours, and pay, and optimally in hiring practices, the products they make, and even what to do with profits.
- TransparencyRadical transparencyRadical transparency is a management approach in which all decision making is carried out publicly. The term was used by Daniel Goleman in his book...
of business practices. ConsumersConsumerConsumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
should be able to find out nearly anything there is to know about a company - business practices, working conditions, the make-up of goods, and more .
- The company's willingness to use true-cost pricing, environmentally sensitive practices, and suppliers who do the same.
- Favoring local production for local consumption, to the extent possible.
External links
- Agorism.info
- Just Things | The Fair Trade Journal of Applied Counter-Economics
- Alongside Night by J. Neil SchulmanJ. Neil SchulmanJoseph Neil Schulman is a novelist who wrote Alongside Night and The Rainbow Cadenza which both received the Prometheus Award, a libertarian science fiction award....