Libertarians like to talk a lot about what they call the Non Aggression principle, which they define as prohibiting “… the initiation or threatening of violence against a person or legitimately owned property of another. “(wiki) Like most libertarian principles, this fails to account for the reality of how liberty and freedom are actually encroached upon. Taken as it stands, it will inevitably serve to defend and entrench privilege, while denying the oppressed any ‘legitimate’ recourse. Economic and social coercion can be tools of tyranny as great as any thuggish secret police, unless they are actively combated. Under a libertarian regime, however, these types of coercion are enshrined into law, and defended by the full (physical) force of the state and society at large (since private violence is acceptable under the NAP in case of threats to legally owned property).
Economic coercion takes many forms, but one of the most blatant is the company town, which I will use as a salutary example. Keep in mind that the company town is not a thought experiment; it is a phenomenon which exists today where not prohibited by force of law. In the company town, the company owns every scrap of land within the town. The town is centered on a factory or extractive operation, which is the town’s primary source of employment. Other potential employment is found in support occupations: a general store, a bar, sometimes a brothel depending on local mores, possibly a school and a clinic. These are also run by the company. Housing is provided as an employment benefit, or is rented to workers at exorbitant rates. The company store’s prices are likewise high, and wages at the factory are low, ensuring that money never lasts until the next pay check and the workers are forced to buy necessities on credit. In this situation, the workers cannot fight the company in any respect: anyone who tries to buck the system will be fired, and their spouse, if any, as well. They will then be evicted, either because they and their families are no longer entitled to employment benefits. And/or are in debt of the rent. They have no money to leave town, because they’re in debt to the company store. Anyone who offers them shelter or assistance is subject to the same treatment. This means that, practically speaking, the company threatens their lives if they disobey; they will be thrown out to freeze or starve, and there is no recourse for them. Libertarians insist that this is different from a gun to the head, but are unable to explain how, except that they declare it so.
A more diffuse but equally real example of economic aggression is redlining. Once again, this is a real practice, and one which continues to a degree today. Redlining consists of financial institutions simply refusing services to certain areas, which are largely inhabited by black people.
Banks drew red lines on city maps around the black neighborhoods, and deny mortgages, home improvement loans, and business loans to people who lived there. Insurance companies likewise would not insure homes or businesses owned by people within those boundaries. Denied even the possibility of acquiring capital, the inhabitants of those neighborhoods are at the mercy of rent-seeking landlords and whatever low wage employment may be offered to them (see social coercion, below). They have no opportunity to start a business, own a home, or even acquire significant savings, since they are forced into low wage employment, and the price of rent and groceries is elevated by the need for an absentee owner to gouge out a share. Such money as comes into the neighborhood rapidly flees again, into the pockets of the absentee owners, and the residents are trapped in a permanent cycle of poverty.
Social coercion also takes many forms, from which I will select sexism, simply because I happen to have seen a great deal of discussion of it lately and it’s fresh in my mind. In America today (and also other places, to a greater or lesser extent; I use the U.S. due to personal familiarity), to be a woman means to be denied choices in many ways. There are certain fields that are designated as ‘women’s fields’ in society, while other professions are assumed to be ‘men’s professions.’ When a woman seeks to enter any field that is not designated as appropriate, she will face a large number of obstacles, which will in many case prove insurmountable. To begin with, female students in ‘inappropriate;’ fields are routinely excluded from class discussions by professors, graded more harshly than male counterparts, and often subject to continued ridicule from professors and classmates alike. As a brief digression, before anyone starts up with the ‘toughen up, words will never hurt me’ bullshit, just stop right there. Harassment and ridicule do take a psychological toll, and ongoing psychological stress can and does create medical problems of both psychiatric and non psychiatric types (e.g. ulcers). Suffering from that type of stress also degrades actual performance relative to those who are not under such stresses. Those who persevere will find that they are hired less often, let go sooner, promoted more rarely and paid less than men with the same qualifications. They will also typically continue to suffer harassment, often of a sexual nature, and ongoing ridicule in the course of doing their jobs. They will be assigned to demeaning and subservient tasks and put in positions which ignore their training and credentials. Once again, this constitutes coercion of women into certain areas of life, denying them the free agency men take as their due.