Libertarians are all about big business?...It just ain't so!

Libertarians are an oft-misunderstood group. Many of the principles upon which Libertarianism is based are counter-intuitive, and they typically require a much more rational approach to various problems than many people are willing or able to take. Consequently, a lot of the things Libertarians believe are usually misunderstood by the masses, and these things are made worse by media misrepresentation of Libertarian ideals. I hope to shed some light on some of these misconceptions in upcoming posts, and to start the ball rolling I've decided to address the Libertarian perspective on business, particularly with regard to government involvement therein.

Many non-Libertarians believe that Libertarians are champions of big business. They believe that our vision of Utopia is an America ruled by giant corporations and international conglomerates. This is a grave misconception.

Libertarians are not corporate shills, ready to jump to the defense of the likes of Microsoft, Wal-Mart, or Starbucks at every turn. True, we do often end up defending such corporations on various principles, but it's not due to some notion that businesses (large or small) are altruistic institutions that have only the best interests of the public at heart. We neither believe nor expect them to be such.

Libertarians do believe, however, in the Free Market, which absent government involvement treats all businesses equally regardless of size. In a free market, businesses answer to consumers, who maintain absolute sovereignty over business by virtue of their buying or refraining from buying any given product. The size of a business is only relevant in its ability to serve consumers. In some industries, larger businesses are better able to serve consumers due to economies of scale, while other industries serve consumers best through smaller institutions.

Libertarians oppose legislation that would hamper business, whether through regulation, taxation, antitrust, etc. This is typically what fosters the "corporate shill" image often portrayed of Libertarianism. However, the other side of the coin is often omitted by non-Libertarian commentary, and that is the fact that we also oppose legislation that seeks to "help" business. This means we oppose government largesse toward companies who would otherwise fail. We oppose tax cuts that favor large businesses over smaller ones. We oppose payroll taxes, minimum wage laws, and other mandatory costs that make it more difficult for smaller businesses to compete. In short, we oppose any government intervention, whether negative or positive, in the market.

When government becomes involved in the market, the natural result is that some businesses or industries are favored over others. As long as government has power in the market, businesses will be able to buy that power. Large, favored businesses will benefit, while smaller, less well-connected businesses will suffer. This is the root of all the flap over campaign finance. If government didn't have market power to sell, would campaign financing really be an issue? But that's another discussion.

This is not to say that the federal government has no role whatsoever in the market. It simply means that the government's role is judicial, rather than legislative. Contract agreements must still be enforced. Theft and fraud must still be punished.

The Libertarian philosophy is deeply rooted in the belief that unhampered free markets are the best way to improve the quality of life of everyone involved. Many people find it difficult to reconcile this viewpoint with the perception of business as it is today. They see most businesses as being willing to do whatever it takes to make a profit, including cheating consumers or even endangering consumers' or employees' lives. It is important to understand, however, that the free market does not reward such behavior. As long as consumers have the right to choose the products they buy or do not buy, they alone will determine the success or failure of any business. Government intervention only serves to hamstring this process, allowing unscrupulous or inefficient businesses to survive despite consumer preference to the contrary.