Susan Hogarth wrote:
    SH) there could not possibly be any    unintended consequences of making pollution a major revenue source for the    state. (SH
 Nice try.  Unfortunately, the theory of  government failure says just that governments TEND to suffer certain failures, whereas the  theory of market failure demonstrates that markets CANNOT AVOID certain  failures -- like the pollution negative externalities that pretty much everybody  but you knows are inevitable if regulated only by torts.
  
 Sorry, but you've picked precisely the worst  possible place and time in all of human history to peddle the theory that  systematic government failure is more inevitable and more ruinous than  systematic market failure in the area of environmental negative  externalities.  You're asking for a  complete overturning of how this polity -- uniquely successful in all of human  history -- provides for its common defense and secures its members' right  to life, liberty, and property. 
  
 According to the three leading indices of  freedom, only 13 nations (out of almost 200) are currently more free than  America. America's constitutional republican framework has been by far the most  successful in human history. It has been increasing personal and civil liberties  almost monotonically for two centuries, and we are among the most economically  free nations in the world, with a per-capita GDP exceeded only by Norway and  Luxembourg. Our 300 million people live and work in a continent-wide nation with  a $13 trillion economy built on a twenty-first century technological  infrastructure. By contrast, anarcholibertarians can merely wave toward a couple  of medieval island nations with populations and population densities four orders  of magnitude less than those of modern industrialized states. As great as  America is, we have detailed, redundant, and current empirical evidence backing  up the mainstream findings of modern economic science about how market-oriented  reforms within the statist framework can make America even more free and even  more prosperous. Anarcholibertarians have nothing of the kind to support their  moralizing a priori claim that America would be a better place if we completely  dismantled our system of rights protection in favor of a promise by  liberty-lovers to set a good example of aggression abstinence.
   It would be untenable to deny that history provides many examples of  situations in which there was no functioning monopoly on force-initiation over a  significant region for a significant period of time, for any non-embarrassing  standard of significance. I've never heard of a single case in the entire  history of organized crime across hundreds of cities in scores of nations over  multiple decades in which the unregulated market for protection behaved remotely  like what is predicted by anarcholibertarian theory. This track record becomes  even more dismal if you include all the cases in history in which there have  been regions lacking effective sovereignty by a central authority. This amounts  to an empirical falsification of the anarcholibertarian theory of protection  markets that by the standards of social science is spectacularly conclusive.
 Every single episode in which there wasn't a monopoly on force-initiation  over a region becomes a test case for anarcholibertarianism. Despite the  literally hundreds of such test cases, the only purported successes advanced for  the theory involve a few thousand pre-industrial farmers sprinkled sparsely  across medieval Iceland and the frontier of colonial Pennsylvania. In contrast  to how even bastard forms of minarchism have been so spectacularly successful  compared to all other significant social experiments, the track record of  anarcholibertarianism is simply  embarrassing.