An AnarchObjectivist is one who accepts the fundamental principles of Ayn Rands philosophy, but rejects her advocacy of minarchism as inconsistent with those basic positions in metaphysics, epistemology, and ethics.
The contradiction between the Objectivist Ethics and minarchism
“The basic political principle of the Objectivist ethics is: no man may initiate the use of physical force against others. No man——or group or society or government—has the right to assume the role of a criminal and initiate the use of physical compulsion against any man. Men have the right to use physical force only in retaliation and only against those who initiate its use. The ethical principle involved is simple and clear-cut: it is the difference between murder and self-defense.” – Ayn Rand “The Objectivist Ethics” (emphasis added)
“A civilized society is one in which physical force is banned from human relationships—in which the government, acting as a policeman, may use force only in retaliation and only against those who initiate its use.” – Ayn Rand “Man’s Rights” (emphasis added)
Now, the problem arises when Miss Rand elaborates on the nature of government:
“a government holds a legal monopoly on the use of physical force.” – Ayn Rand “America’s Persecuted Minority: Big Business” (emphasis in original)
If a government holds a legal monopoly on the retaliatory use of force, it necessarily initiates the use of force against those whom would seek to start businesses in the arbitration and defense services industries, as well as all those who seek to do business with such persons. If a defense service is not allowed to exist or operate, yet has not initiated the use of force against anyone, and only retaliates against those who have initiated the use of force, those individuals rights have been violated.
A government that holds a legal monopoly on the retaliatory use of force actually initiates the use of force against its citizens, which violates the basic political principle of the Objectivist ethics.
Best Case Scenario
If, under an Objectivist Minarchy, the government did allow competition in the fields of arbitration and defense services,market pressures would render the government obsolete. As such a government would be voluntarily funded (so as not to violate the basic principle), private firms, in a free market, would be able to provide services cheaper and more efficiently than a government could and so would put the government out of business, and lead to de facto anarcho-capitalism.
Resolving the Contradiction