Why Black Market Entrepreneurs Matter to the World Economy

In his book, “Stealth of Nations: The Global Rise of the Informal Economy,” Neuwirth points out that small, illegal, off-the-books businesses collectively account for trillions of dollars in commerce and employ fully half the world’s workers. Further, he says, these enterprises are critical sources of entrepreneurialism, innovation, and self-reliance. And the globe’s gray and black markets have grown during the international recession, adding jobs, increasing sales, and improving the lives of hundreds of millions. It’s time, Neuwirth says, for the developed world to wake up to what those who are working in the shadows of globalization have to offer.

The Profound Value of Market Values

Even though economists, like others, don’t know the objective value of anything, they do know that as long as people voluntarily enter market arrangements, all parties to each transaction expect that the subjective value they will receive as benefits will exceed the subjective value they bear as costs. Greater subjective values for all is the result. And any coercive intrusion that forcibly moves the quantity exchanged away from what individuals would voluntarily choose destroys joint gains to participants, making the “solutions” offered by economists’ Wilde-eyed critics worse than the supposed problems used to justify them.

Ideology, Identity, Solidarity, and Collective Action

The interrelated complex of ideology, identity, solidarity, and collective action form the ground level in fruitful social analysis. Leaving out this complex, as both mainstream and Austrian economists usually do, means that one sacrifices the opportunity to understand what otherwise seems inexplicable or gets explained only by bizarrely twisting the standard model. At least, so I have argued since the early 1980s, most fully in chapter 3 of Crisis and Leviathan, but with some elaboration and many applications in later works.

The Role of Capitalism in Anarchy

Anarcho-capitalists have a tendency to fancy themselves as too far outside the normal sphere of anarchy when we are actually just anarchists who understand both economics and human nature. In a free society devoid of the fiction that is authority, some people would indeed acquire, improve, and trade natural resources. Ergo, capitalism. This would happen not because a system of capitalism was established but simply because no one was stopping production and trade from occurring.

The Relational Anarchist Primer

According to relational anarchists, the better humans connect with each other, the more peace and understanding that will exist between them. The greater the strength of the relationships, the less likely rulers will become necessary or begin to emerge. Anarchism means “without rulers.” And besides being a political assertion, this is a psychological and relational preference. It is apolitical, based on preferred relationship standards. Instead of dispensing violence, these anarchists dispense compassion.

The Man Behind the Curtain

Although the Grateful Dead told us that “every silver lining’s got a touch of grey” (lyric by Robert Hunter), it’s my nature to look for one anyway. At the risk of being accused of gross naivete, I’d like to hope that the Trump presidency (I still can’t believe I have to type those words) will once and for all sour people on government and politics.