Abstract

Honors Research: PPE @ UPenn | This thesis seeks to address some of the most central questions to the fields of political philosophy and political economy. How can social order and government develop from anarchy under standard economic assumptions of rationality, where all agents act strictly in their own interests? What are the deontological limits to the State’s use of force such that political legitimacy is maintained, and how do these ethical boundaries of government relate to moral obligations conferred upon individuals? Finally, what sets of policies and social institutions ought the State implement to achieve the best welfare outcomes for a society, and is there a necessary conflict between policy consequentialism and deontological ethics? This thesis will first show that a laissez-faire capitalist social order spontaneously emerges from the State of Nature as a result of mutual self-interest between rational agents, with the institution of government being a mere product of market forces that is best modeled as a locally-monopolized, excludable, collective entity with global competition. Then, this thesis will defend a theory of natural rights on the basis that persons are normatively separate, before establishing that laissez-faire capitalism and its contractual form of government are uniquely in compliance with these universal moral standards of conduct that predate the institution of any state. Finally, it will be argued in this thesis that the key tenets of laissez-faire capitalism - strong individual rights to life, liberty, and property - produce maximal human welfare from both individualist and collectivist aggregations, before such conclusions are translated into a foundation for limited government. These arguments serve to solidify libertarianism as both the dominant political philosophy and the globally convergent equilibrium of political organization, while also demonstrating that laissez-faire capitalism is the optimal form of social order.