An Introduction to Counter-Economics

The strategy of counter-economics was first formulated by Samuel Edward Konkin III in the early 1970s in the USA. With his book New Libertarian Manifesto, Konkin laid the foundation for what he called black market anarchism. He developed these ideas further in his book An Agorist Primer, which was only published after his death. Konkin also planned to publish another book titled Counter-Economics, which was intended to compete with Karl Marx’s Communist Manifesto. Konkin died before completing the book and was only able to finish the first six of 18 planned chapters. The existing chapters and notes were compiled and published after his death by his friend Victor Koman. The book is now also available in German and can be found in our Book Section. The book examines topics such as tax counter-economics, international counter-economics, Soviet counter-economics, drug counter-economics, inflation counter-economics, and information counter-economics within a historical context.

The term counter-economics was chosen by Konkin with reference to the counter-culture of the 1960s. While counter-culture or counterculture rejected the values of the establishment, counter-economics rejects the economy of the establishment.

Konkin encouraged individuals to exit the mainstream economic system. He was one of the first modern thinkers to recognize that the unregulated market is actually the world’s largest market. Sometimes referred to as “System-D,” the alternative or informal economy, this untaxed and unregulated market has a value of trillions of dollars.

Counter-economics focuses on actions that evade, avoid, and defy the state, and is thus a central strategy of philosophical agorism. By creating alternative systems outside of state control, the aim is to disempower the state and preserve the freedom of people. Konkin recognized that whenever a government or a king throughout human history attempted to enforce a prohibition — whether on drugs, alcohol, gambling, sex, or books — this unintentionally led to growth in the counter-economy. The more the state interferes in people’s daily lives, the larger the counter-economy grows. The participation of an increasingly growing number of people in counter-economic activities conversely leads to the diminishing power of the state. Counter-economics is a way to disempower the state and preserve the freedom of people.

Konkin described this as “The theory and practice of all human actions not accepted by the state and not involving any initiating violence or threat of violence.” Over the years, Konkin continuously refined his understanding and writing on this topic, providing several definitions and background information on counter-economics. Here are a few examples:

Counter-economics is an explanation of how people protect their wealth and property from the state. The actual human actions to evade, avoid, and defy the state can be called counter-economic activities. Since this text itself is counter-economic theory, counter-economics will be used to mean the practice. [The New Libertarian Manifesto]

A counter-economist is (1) someone who performs a counter-economic action, (2) someone who studies such actions. Counter-economics is the (1) practice and (2) study of counter-economic actions. [An Agorist Primer]

Counter-economics means doing what you want, when you want, for your own good reasons. [Counter-Economics]

Counter-economics sounds like counter-culture; indeed, the term was chosen in this sense. While the counterculture of the 1960s rejected the “culture” of the establishment and its values, counter-economists reject the economy of the establishment as equally corrupt. Much of the counterculture was counter-economic, but much of it was not. Anti-economics is not counter-economics; in fact, counter-economics was developed as a theory out of a kind of orthodox rebellion against a heretical, impure, established economics. [emphasis mine] [Counter-Economics]

Counter-economics is not only an economic but also a social and political phenomenon and goes hand in hand with the philosophy of agorism. It is a challenge to the authority of the state and an attempt to build alternative systems based on voluntary exchange and individual freedom. It is a practical way for the individual to exit state-controlled systems and align their actions with their values.

Are You a Counter-Economist?

Being a counter-economist therefore means finding ways outside the system once you encounter obstacles to your own freedom and health. This can include using alternative currencies instead of legally prescribed means of payment, using community gardens, building independent media projects, or creating alternative educational programs.

In truth, counter-economics already exists around you. As soon as you pay a neighbor for lawn mowing or handyman work in cash, you are participating in counter-economics. The transaction involves no tax payments to the state, and the use of cash makes it a non-digital, non-traceable transaction. If you have ever shopped at a flea market, a jumble sale, or a pop-up store and paid no taxes — or perhaps even paid with an alternative currency — then you were a counter-economist. Of course, most people who participate in the counter/underground/alternative economy have never heard of Konkin and do not recognize the potential of counter-economics. Konkin believed that raising awareness of the power of counter-economics could create a mass movement of people leaving the system and building new ways of life outside of the technocratic state.

Counter-Economics is Not the Same as the Black Market

Counter-economics is once again a growing phenomenon in the 21st century due to the increasingly totalitarian practices of many governments around the world. It encompasses a wide spectrum of activities, from tax evasion to alternative currencies. It is a practical way for the individual to exit state-controlled systems and align their actions with their values. The growth of counter-economics is a direct consequence of state intervention. Every state intervention in the free market creates a new opportunity for entrepreneurs to serve the demand that the state prohibits or regulates. The state is viewed as an obstacle to free exchange and is therefore bypassed or disregarded.

However, counter-economics is not to be equated with the shadow economy or the black market. While the shadow economy primarily focuses on tax evasion and undeclared income, counter-economics encompasses all human activities that take place without state permission. Furthermore, the philosophy of agorism with its economic strategy of counter-economics is at its core non-violent and based on complete voluntariness. Thus, while many actions on the black market are counter-economic, the black market itself is not.

Conclusion

In summary, the history of counter-economics is rooted in Konkin’s critique of the state and the development of a strategy to achieve a stateless society through voluntary action and free exchange. Although his ideas were developed in the 1970s and 1980s, they remain relevant and continue to inspire those who seek alternatives to state control.

A counter-economist is anyone who practices or studies counter-economic actions. This includes any human action carried out without the consent of the state. Since laws govern almost every human activity, everyone must bend or break laws to some degree just to exist. This means that every person is in some way a counter-economist. This strategy can be practiced by anyone anywhere in the world, regardless of their background or political affiliation.

Counter-economics is very broad and encompasses various activities such as:

• Black & gray markets

• Tax refusal

• Barter trade

• Use of alternative currencies

• Informal labor & trade

• Smuggling

• Illegal immigration

• Alternative education & media

• Community gardens & exchange networks

• Decentralized information systems The motives for participating in counter-economics can be equally diverse and varied. Some of these motives are:

• To evade taxes and state control

• To circumvent regulations

• To protect oneself from inflation

• To align actions with personal principles and values

• To satisfy unmet needs and desires — that are not fulfilled by the official economy