This article argues that Robert Nozick's Anarchy, State, and Utopia has been widely misread as a crude defense of the inequalities of contemporary capitalist societies. Nozick's book was in fact a work of ideal theory that proposed an account of the emergence of the state as a new moral foundation for liberal thought and practice. Nozick believed a justification of the state derived from a hypothetical account of its emergence without violating anyone's rights was more plausible than the standard liberal (...) claim that the legitimacy of the state followed from the hypothetical consent of the governed. An appreciation of the purpose and success of Nozick's account of the emergence of the state challenges established interpretations of his book as an inherently flawed, if at times ingenious, conservative political tract. (shrink)