Imagine for a moment a society without compulsion. People are working for themselves and each other. They might share, barter or agree to use a private money or monies in exchange. If everybody could somehow agree to share land and other natural resources, respect the wishes of all, contribute voluntarily to the production of infrastructure and provision of social services, agree to the modes of production in which they personally need to engage (whether wage labor, cooperatives or communes) and address all other individual and collective needs on a voluntary basis, there would be no need for government and no need for state money. A role for government arises when members of the community cannot find amicable solutions to all conflicts without some mechanism for orchestrating their collective will. Fiat money is a highly effective tool for this purpose.

Continue reading →