Anarcho-capitalism (also known as “liberty anarchy” or “market anarchism” or “private-property anarchism”) is a libertarian and individualist anarchist political philosophy that advocates the elimination of the state in favor of individual sovereignty in a free market. Economist Murray Rothbard is credited with coining the term. In an anarcho-capitalist society, law enforcement, courts, and all other security services would be provided by voluntarily-funded competitors such as private defense agencies rather than through taxation, and money would be privately and competitively provided in an open market. According to anarcho-capitalists, personal and economic activities would be regulated by the natural laws of the market and through private law rather than through politics. Furthermore, victimless crimes and crimes against the state would not exist.
Anarcho-capitalists argue for a society based on the voluntary trade of private property and services (including money, consumer goods, land, and capital goods) in order to maximize individual liberty and prosperity. However, they also recognize charity and communal arrangements as part of the same voluntary ethic. Though anarcho-capitalists are known for asserting a right to private (individualized or joint non-public) property, some propose that non-state public or community property can also exist in an anarcho-capitalist society. For them, what is important is that it is acquired and transferred without help or hindrance from the compulsory state. Anarcho-capitalist libertarians believe that the only just, and/or most economically beneficial, way to acquire property is through voluntary trade, gift, or labor-based original appropriation, rather than through aggression or fraud.
Anarcho-capitalists see free-market capitalism as the basis for a free and prosperous society. Murray Rothbard said that the difference between free-market capitalism and "state capitalism" is the difference between "peaceful, voluntary exchange" and a collusive partnership between business and government that uses coercion to subvert the free market. "Capitalism," as anarcho-capitalists employ the term, is not to be confused with state monopoly capitalism, crony capitalism, corporatism, or contemporary mixed economies, wherein market incentives and disincentives may be altered by state action. So they reject the state, based on the belief that states are aggressive entities which steal property (through taxation and expropriation), initiate aggression, are a compulsory monopoly on the use of force, use their coercive powers to benefit some businesses and individuals at the expense of others, create monopolies, restrict trade, and restrict personal freedoms via drug laws, compulsory education, conscription, laws on food and morality, and the like. The embrace of unfettered capitalism leads to considerable tension between anarcho-capitalists and many social anarchists that view capitalism and its market as just another authority. Anti-capitalist anarchists generally consider anarcho-capitalism a contradiction in terms, and vice versa.