Wikipedia defines an anarcho-capitalism state as, “an economic arrangement in which private property and economic activity are unregulated”. Nowadays, the philosophical foundation of this political theory is the work of philosophers such as Max Sterner, Henry David Thoreau and John Locke. They each express the belief that individual ownership of the means of production is a moral and social right, while such ownership is not compatible with the rule of law and the authority of governments. Since government cannot legitimately control property, all land is collectively owned by all its citizens.
The distinguishing feature of a state of anarcho-capitalism is the absence of centralized force or legal compulsion. Unlike socialism and traditional capitalism, there is no need to use force to get people to work or to own property, nor to engage in economic exchanges or market exchanges. Individuals are free to exchange goods and services on their own terms and for their own purposes, without any external compulsion or intervention from others. This results in the absence of a role for government regulation and protection, and the absence of a legal code that defines the rules of conduct for the individuals who are self-employed, free traders, and those who live in a communally autonomous way.
However, there is a potential problem with anarcho-capitalism. Many classical liberal thinkers argue that the end result is an extremely complex set of problems and that it would be unrealistic to try to simplify it. It is also worth remembering that although some contemporary political theories, such as those of Rawls and utilitarianism, include elements of anarchy in their arguments, they also privilege the rights of individuals and allow the state to intervene in their lives in certain circumstances. Furthermore, there is a problem with a society based upon voluntary collectives having monopoly power over productive resources. Still, these problems can be overcome by developing a more comprehensive view of freedom of choice within a society based upon mutual aid and respect for individual rights.