Counter-economics is an

economic theory Economics () is a behavioral science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...

and

revolutionary A revolutionary is a person who either participates in, or advocates for, a revolution. The term ''revolutionary'' can also be used as an adjective to describe something producing a major and sudden impact on society. Definition The term—bot ...

method consisting of

direct action Direct action is a term for economic and political behavior in which participants use agency—for example economic or physical power—to achieve their goals. The aim of direct action is to either obstruct a certain practice (such as a governm ...

carried out through the

black market A black market is a Secrecy, clandestine Market (economics), market or series of transactions that has some aspect of illegality, or is not compliant with an institutional set of rules. If the rule defines the set of goods and services who ...

or the gray market. As a term, it was originally used by American

libertarian Libertarianism (from ; or from ) is a political philosophy that holds freedom, personal sovereignty, and liberty as primary values. Many libertarians believe that the concept of freedom is in accord with the Non-Aggression Principle, according ...

activists and theorists

Samuel Edward Konkin III Samuel Edward Konkin III (July 8, 1947 – February 23, 2004), also known as SEK3, was a Canadian-American libertarian philosopher and Austrian school economist. As the author of the publication ''New Libertarian Manifesto'', he was a proponen ...

and J. Neil Schulman. The former defined it as the study or practice "of all peaceful human action which is forbidden by the State". The term is short for counter- establishment economics and may also be referred to as counter-politics. Counter-economics was integrated by Schulman into Konkin's doctrine of

agorism Samuel Edward Konkin III (July 8, 1947 – February 23, 2004), also known as SEK3, was a Canadian-American libertarian philosopher and Austrian school economist. As the author of the publication ''New Libertarian Manifesto'', he was a proponen ...

, a left-libertarian

social philosophy Social philosophy is the study and interpretation of society and social institutions in terms of ethical values rather than empirical relations. Social philosophers emphasize understanding the social contexts for political, legal, moral and cultur ...

and branch of left-wing market anarchism that advocates creating a society in which all relations between people are voluntary exchanges. Within

libertarianism in the United States In the United States, libertarianism is a political philosophy promoting individual liberty. According to common meanings of Conservatism in the United States, conservatism and Modern liberalism in the United States, liberalism in the United S ...

, counter-economics has been adopted by anarcho-capitalists, left-wing market anarchists, as well as more anti-capitalist anarchists.

Origins

The first presentation of the theory of counter-economics was made by Samuel Edward Konkin III at a conference organized by J. Neil Schulman in 1974 held in Cheshire, Massachusetts. The first book to portray counter-economics as a strategy for achieving a libertarian society was Schulman's novel '' Alongside Night'' (1979).

Relationship with agorism

Konkin's agorism, as exposited in his ''

New Libertarian Manifesto Samuel Edward Konkin III (July 8, 1947 – February 23, 2004), also known as SEK3, was a Canadian-American libertarianism, libertarian philosopher and Austrian school economist. As the author of the publication ''New Libertarian Manifesto'', he ...

'', postulates that the correct method of achieving a voluntary society is through advocacy and growth of the

underground economy A black market is a clandestine market or series of transactions that has some aspect of illegality, or is not compliant with an institutional set of rules. If the rule defines the set of goods and services whose production and distribut ...

or "black market" – the "counter-economy" as Konkin put it – until such a point that the State's perceived

moral authority Moral authority is authority premised on principles, or fundamental truths, which are independent of written, or positive laws. As such, moral authority necessitates the existence of and adherence to truth. Because truth does not change the princip ...

and outright power have been so thoroughly undermined that revolutionary market anarchist legal and security enterprises are able to arise from underground and ultimately suppress government as a criminal activity (with taxation being treated as theft, war being treated as mass murder, ''et cetera''). According to Konkin's pamphlet ''Counter-Economics'': According to Konkin, counter-economics also allows for immediate self-liberation from statist controls, to whatever degree practical, by applying entrepreneurial logic to rationally decide which laws to discreetly break and when. The fundamental principle is to trade risk for profit, although profit can refer to any gain in perceived value rather than strictly monetary gains (as a consequence of the

subjective theory of value The subjective theory of value (STV) is an theory of value (economics), economic theory for explaining how the value of goods and services are not only set but also how they can fluctuate over time. The contrasting system is typically known as the ...

). Voluntary practices of counter-economics include: * Bartering and alternative currency use * Illegal migration or hiring illegal immigrants *

Drug trafficking A drug is any chemical substance other than a nutrient or an essential dietary ingredient, which, when administered to a living organism, produces a biological effect. Consumption of drugs can be via inhalation, injection, smoking, ingestion, ...

* Exchange of food stamps * Mutual credit *

Smuggling Smuggling is the illegal transportation of objects, substances, information or people, such as out of a house or buildings, into a prison, or across an international border, in violation of applicable laws or other regulations. More broadly, soc ...

Subsistence farming Subsistence agriculture occurs when farmers grow crops on smallholdings to meet the needs of themselves and their families. Subsistence agriculturalists target farm output for survival and for mostly local requirements. Planting decisions occ ...

Tax evasion Tax evasion or tax fraud is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to red ...

Prostitution Prostitution is a type of sex work that involves engaging in sexual activity in exchange for payment. The definition of "sexual activity" varies, and is often defined as an activity requiring physical contact (e.g., sexual intercourse, no ...

Strategy

According to Per Bylund, counter-economics applies two basic strategies to liberate people from the state, vertical or introverted and horizontal or extroverted, arguing:

Vertical or introverted

The vertical or introverted strategy is aimed towards individuals concentrating on decentralized local infrastructure as opposed to expansive state foundations and explained as such:

Voluntary association A voluntary group or union (also sometimes called a voluntary organization, common-interest association, association, or society) is a group of individuals who enter into an agreement, usually as volunteers, to form a body (or organization) to a ...

among those in a community is essential to this concept. Bylund believes developing means to refuse dependency on state services and become self-reliant can be an effective course of action to achieve

free market In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...

processes. Community technology is an example of this strategy. Bylund mentions

Karl Hess Karl Hess (born Carl Hess III; May 25, 1923 – April 22, 1994) was an American speechwriter and author. He was also a political philosopher, editor, welder, motorcycle racer, tax resister, and libertarian activist. His career included stints o ...

's efforts to transform a Washington, D.C. neighborhood which reflects these principles as a primary example. Hess set up green houses on top of available rooftops and using old washing machine parts to build a fish-breeding facility in a building basement.

Horizontal or extroverted

The horizontal or extroverted strategy applies individuals actively creating black market networks and structures which can be stretched beyond neighborhood communities focus in the vertical strategy, with Bylund arguing as follows:

References

External links

The Agorism Project – Agorism.co

Agorism: Revolutionary market anarchism

Just Things , The Fair Trade Journal of Applied Counter-Economics

by J. Neil Schulman {{libertarianism 1974 introductions Agorism Economic ideologies Free market Libertarian terms Libertarian theory Libertarianism in the United States Schools of economic thought Anarchist terminology