Book Review: Social Contract, Free Ride: A Study of the Public Goods Problem

The anarcho- capitalist notion that the state (that is, the sovereign apparatus of political government) is not a necessary evil but an unnecessary one came to full fruition in the second half of the 20th century, though its roots go back to the 19th century. Anthony de Jasay was never a "mainstream" anarcho- capitalist, but he did define himself as a liberal anarchist, and his arguments are scholarly, original, and deep. (See "A Conservative Anarchist? Anthony de Jasay, 1925-2019," Spring 2019.) His book Social Contract, Free Ride, first released 35 years ago, did not get the reception it deserved in economics or political philosophy circles. To counter that, I offer this review "From the Past." De Jasay argued that the main justification for the state--that it produces or finances so- called "public goods" (e.g., parks, streets, public security)--is economically flawed. Even if we assume that all individuals are self- interested and even selfish, some of them want some public goods enough that they would be willing to pay something to obtain them, notwithstanding that others would free ride on their contributions. Hence, de Jasay claimed, there is no need for an overall social contract to enforce private contracts and property. Let's test his arguments and, in the process, review important concepts in the economics of government.