There's certainly a difference. If a number of a different providers become essentially indistinguishable from one another, it is because they're all making their subscribers happy. For example, are there differences between Bank of America, Wells Fargo, Citibank, PNC, and Capital One? Sort of, but not really--but that's because they're all doing a good job. If Bank of America, for example, becomes an entity that's no longer as good as its competitors, it will go out of business.
Defense organizations pursue profit by being fair, because if they are unfair, no one will buy from them. So do courts--the more biased, unethical, or unwise a given court becomes, the less respect it gets. In that manner, it will also receive less business.
Are you really trying to suggest that there's not a great deal of corporatism (or soft fascism as some call it) in most nations today? At least in a system without coerced monopoly, people have a chance to change services. The richest around already can afford to lean on regulatory agencies, and yes, law enforcement and justice agencies as well.
I don't think we can compare a theoretical free market defense industry with current insurance industries in the US and Canada. Both are heavily regulated by the state, and there are mandates on the individual to purchase insurance as well.
I don't think I ever implied that defensive services would cost the same, or even be cheap the world over--they wouldn't be. For example, I imagine I'd have to pay a lot more to get someone to protect me if I do dangerous things, or go around with dangerous people. I also imagine that I'd have to pay more for defensive services if I decide to live in a dangerous part of the world.
Consumers have plenty of power over insurance agencies. Insurance agencies gain and lose money as well as customers all the time. They exist only because they please their customers. You have plenty of power over an insurance agency, because you can threaten or actually switch services, thereby removing an asset from them.
A watchdog agency that loses respect loses profit. It's certainly possible, and even likely that a given group will attempt to buy out those keeping track of them. Profit motive, however, will entice watchdog agencies to be honest. Dishonest agencies will drive their subscribers away, whereas in the current system, we can't really force the FDA into bankruptcy.
I'm not sure I understand your final question. If a few wealthy organizations attempt to make rules that other groups won't enforce, then they have to find a way to work around the lack of a given rule set or else go out of business.
In a free market defense system, defense agencies will have a very strong motive to boot out bad employees. Bad employee = bad business decision. Whereas in a monopolistic law enforcement system, there's a motive to retain aggressive, violent employees, because it increases the perceived power of the police and because it also desensitizes the populace to the idea of being increasingly policed, thereby solidifying the monopoly.
There's a very strong motive for a given police agent in an an-cap system to be fair. Being unfair increases the chances of him being fired (or shot).
It might well be that just a few policing agencies end up surviving in a free market system, but that's alright if they're making their customers happy. The moment they cease to make their customers happy, their customers will switch, and if there's cronyism going on, someone will start some new defense agency. Whereas the state owns you, and no matter how pissed off you get at the actions of the military or police, they can fund themselves and force you to foot the bill.
Replace person with organization, then, and my example stands. Wealthy groups apparently do have a motive to go after drug dealers--look at the status of the world today. The federal government is the wealthiest group in the US by far, and if at some point it lost its economic clout it could simply tax every individual and business in the country to regain lost power. Furthermore, the federal government also leans heavily on other governments to ban drugs as well.
Let's assume that a given agricultural company manages to set itself up at the top and begins to--let's be extreme here--hire assassins to go after competitors. Well, first off, they'd have to pay through the nose to do so, they'd have to take serious risks by trusting such unsavory individuals, and they'd have to avoid detection or face a great deal of violence on the part of their intended targets, and any pro-competition bystanders, so to speak. I don't see how this near-conspiratorial scenario is precluded by the existence of a state, though--could you explain that? At least in an an-cap system, those that want to wage war have to bear the costs, instead of taxing other people to do so.
Despite the stigma, "Blackwater" contracts out bodyguard services, and not much else. I don't even see what you're trying to say here. Why on Earth would a military organization in an an-cap system go after drug dealers (or competing farmers, or what have you)? Only if it is both paid handsomely, and it doesn't have an ethical sense. This means that quickly, a military organization enforcing a monopoly or oligopoly would de facto or actually become a fully-owned subsidiary of the monopolistic or oligopolistic entities. They'd have very, very risky positions, and again, I don't see how this doomsday scenario is precluded by the existence of the state. If the state were eliminate enforcers of monopoly, it would doubtlessly enjoy great popular support. I don't see why the state is necessary to facilitate a war of this nature. Let willing soldiers or police find causes and leaders as they see fit.
I am certain some collectives would end up selling crack, heroine, and all sorts of other things if the state didn't make drugs illegal. Collectives seeking to use violence to end the sale of drugs would have to justify the war to their shareholders and employees, which makes me think that they'd have a very, very very uphill battle to fight before even starting a war!
If there's little risk of being caught, there's only morality that prevents an individual or collective from stealing.
This is true in a monopolistic law enforcement system as well...
I suppose if anarcho-capitalists successfully end the state and a free market defense industry is created rather than a monopolistic one, there are going to be a few people who think that no government means that they can steal without worry. They'll quickly end up punished, either by their victims, or the defense/justice systems representing their victims.
It's possible that a few communities dedicated to stealing might pop up, but they'd have to keep to themselves or risk all-out invasion by several other communities. Peaceful communities and individuals have a clear stake in eliminating theft, even with violence.
First off, there would be no "national level" by definition, as the nation itself would cease to exist. Your point stands, however, so I'll address it.
Institutional corruption and poor service, even when it comes to the most important of things, already exist in the US. In an anarcho-capitalist system, no one would be locked into a given institution or be forced to fund it or suffer its poor services.
If you're talking about top-down theft--that is, a monolithic entity sending men with guns to take money from individuals and poorer businesses--well, then your doomsday scenario is already realized. In fact, all of your doomsday scenarios are already realized or not precluded by the existence of a state!
Large entities that steal money are propped up by the state. An-cap system = no state.
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