Anarchy

AAA

DEFINITION of 'Anarchy'

The condition of a society with no government. Some people think an anarchist society would result in lawlessness and chaos. Others, such as anarcho-capitalists, believe that private businesses would fill the void of government and provide the services that people need - including those traditionally thought of as essential government functions, like building roads and providing police and fire protection.

INVESTOPEDIA EXPLAINS 'Anarchy'

There is widespread disagreement among anarchists about what an anarchist society would look like. For example, some see it as a completely individualist society; others view it as a completely collectivist society. An overarching characteristic of anarchy, however, is that the people govern (or fail to govern) themselves. There is no political group in charge of making decisions for the masses. A potential problem with anarchy is that legal protection is not provided for patents, personal businesses or even corporations.

RELATED TERMS
  1. Capitalism

    A system of economics based on the private ownership of capital ...
  2. Marxism

    A social, political and economic philosophy that examines the ...
  3. Karl Marx

    A philosopher and economist famous for his ideas about capitalism ...
  4. Labor Productivity

    A measurement of economic growth of a country. Labor productivity ...
  5. Economics

    A social science that studies how individuals, governments, firms ...
  6. Factors Of Production

    An economic term to describe the inputs that are used in the ...
RELATED FAQS
  1. How is productivity calculated?

    Productivity measures the efficiency of a company's production process. It is calculated by dividing the outputs produced ... Read Full Answer >>
  2. What is the role of agency theory in corporate governance?

    Agency theory is used to understand the relationships between agents and principals. The agent represents the principal in ... Read Full Answer >>
  3. What's the difference between agency theory and stakeholder theory?

    Agency theory and stakeholder theory are both used to understand and explain various types of relationships in business. ... Read Full Answer >>
  4. What is a diseconomy of scale and how does this occur?

    In economics, diseconomies of scale describes the phenomenon that occurs when a firm experiences increasing marginal costs ... Read Full Answer >>
  5. What is backward integration and how does it relate to economies of scale?

    A company would generally only be willing to pursue backward integration to improve operational efficiency or reduce input ... Read Full Answer >>
  6. Why do companies decide to unbundle their lines of business?

    Corporate philosophy has long held that the three major activities that drive a business – finding and retaining customers, ... Read Full Answer >>
Related Articles
  1. Economics

    Can The IMF Solve Global Economic Problems?

    The IMF is an important tool to help struggling countries, but it's not without its problems.
  2. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  3. Economics

    Sanctions Between Countries Pack a Bigger Punch Than You Might Think

    In response to Russia's annexation of Crimea, in March 2014 the West slapped sanctions on dozens of Russian hotshots. So what, you ask? Well, sancitons can pack a bigger punch than you might ...
  4. Economics

    How Economic Reality Influences The Market

    The market is confusing enough. But when you consider how economic reality can influence market prices, it's downright baffling.
  5. Fundamental Analysis

    Hamburger Economics: The Big Mac Index

    In theory, PPP stands up much better than it does in reality. Find out how to evaluate currencies according to the price of a Big Mac.
  6. Fundamental Analysis

    Vital Link: Manufacturing And Economic Recovery

    Manufacturing output is one of the clearest signs that an economy is recovering from a recession.
  7. Savings

    4 Ways To Weather An Economic Storm

    Keeping a cool head and sticking to a plan during an economic slump is vital to financial stability.
  8. Economics

    The Nash Equilibrium

    Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium ...
  9. Investing Basics

    The Basics Of A Financial Analysis Report

    Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ...
  10. Economics

    How Education And Training Affect The Economy

    Education and training benefit not only the worker, but also the employer and the country as a whole.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center