Financing under Liberalism

Financing under Liberalism

Many may think that a society that switches to liberal governance will collapse. When coercion is no longer part of the equation, how then do we finance expensive projects, such as hospitals, railways and roads?

It is easy to forget that a society has no money to begin with. A welfare state, for instance, takes such money from its citizens through taxes and redistribute it to projects according to the inclinations of the responsible politicians.

Therefore, many are afraid that benefits like health services, roads, pensions, etc. will disappear or be reserved for the wealthiest, if no welfare state exists.

We Are Doing Just Fine

Fortunately, the world does not work as outlined above. Humanity has demonstrated an ability to handle even the most complex tasks without having to rely on a central authority.

The free and peaceful exchange of ideas, goods, and services, also known as the market, has an undeniable ability to solve both small and large challenges. When people are free to think and act independently, there is no limit to the solutions we can devise.

Today, we already pay for what we want: We pay for food, clothing, housing, transportation, insurance, cultural experiences, and so on. In other words, there should be no lack of motivation to pay for health insurance as well (which in turn can finance the hospital), the roads we use, and the government, which is there to protect us against violence and loss of freedom.

Concrete Payment Solutions

Let us say that people are willing to pay for themselves and give to charity. How is all this going to work out in practical terms? Surely, it would mean dealing with a whole mishmash of actors.

There are already smart payment solutions available today. The combination of eFaktura Giro checks makes it easy for you to subscribe to a number of services, but this can be made even easier in a society with a free banking sector.

Today, the financial sector is subject to many regulations, which are often obstacles to the most effective payment solutions. In collaboration with a free banking sector, the various providers find out what works best for the customers, and the userfriendliness will improve accordingly.

There are no limits to what payment solutions might result in. Imagine, for instance, a subscriptionbased «app store» on the internet – only with real services, such as «Hospital», «Police», «Fire department», or «Highway E6» instead. Or a solution along the lines of the user financing service Kickstarter.

The possibilities are unlimited.

Not Tomorrow, But…

It is important to keep in mind that a liberal society cannot appear overnight. In other words, we will have plenty of time to get used to taking more responsibility for our lives.

Furthermore, it is essential to remember a few key factors of such a society: Prosperity and property rights. In a constitutional society that protects property rights, it provides increased motivation for both large and small entrepreneurs to risk their own capital. Production will increase and become more effective, which increases the general level of prosperity. Under such circumstances, most people will have more money to spend than they do today, and therefore they will have more money left over to finance hospitals, railroads, etc.


  • Humanity has demonstrated an ability to solve even very complex tasks without interference from government
  • When we are free to think and act independently, there are no limits to the solutions we can come up with
  • Today, we already pay directly for much of what we want, so there is no lack of motivation
  • There are countless payment solutions that can make financing different services as easy as possible in a free society
  • In a society that protects property rights, there is no lack of prosperity, and thus the ability to finance expensive projects



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