Theoretical example:

Tomorrow the government caves in on itself and resorts to a libertarian style of limited government.

Question:

How will the military of this libertarian style limited government achieve its financing?

A.) Through Taxation
B.) Through voluntary exchange



If the answer is A then the very foundation of libertarianism, namely the Non-Aggression principle is being violated. Taxation is thief [ even if it is a 1% tax ] and is backed by the threat of violence [ throwing someone in jail ]. Therefore in terms of logic and reason, the limited government would stop being libertarian if it imposed taxation onto its citizens in order to create/sustain a fighting force.

If the answer is B, then the limited government itself is just another protection agency. Those who do not want to buy the protection services of the government can either A.) go without them and join in / create a voluntary militia which can be organized for defense or B.) contract the services of another protection agency that can defend the citizen. Now if the government tries to prevent this outside protection agency from giving services to the individual then again they are violating the foundation of libertarianism, the non-aggression principle, by threatening an individual or individuals with time in jail for providing a desired service. If there are other agencies that can provided the service of protection, then why not legal services?