Anarcho-capitalism is the political philosophy and theory that: The State is an unnecessary evil and should be abolished, and a free-market private property economic system is morally permissible. The first is simply the definition of anarchism, and the second is soft propertarianism, known more generally as a free market or laissez-faire. Moral permissibility is a minimum position. Almost all anarcho-capitalists believe also that a laissez-faire economic system is generally better than alternatives. Some strong propertarians, such as objectivists, go further and claim that laissez-faire is the only moral economic system.
A typical dictionary definition of anarchism is: The theory or doctrine that all forms of government are oppressive and undesirable and should be abolished. This definition follows the etymology of the word: Anarchism is derived from the Greek αναρχία meaning without archon (ruler, chief, or king.) This is the core meaning of the term – against the State. This means against it in principle, as an institution, not merely against certain policies or personnel.
Murray Rothbard coined the term anarcho-capitalist in the winter of 1949 or “My whole position was inconsistent […], there were only two logical possibilities: socialism, or anarchism. Since it was out of the question for me to become a socialist, I found myself pushed by the irresistible logic of the case, a private property anarchist, or, as I would later dub it, an anarcho-capitalist.”
Some prefer the term market anarchism to avoid the negative connotations some people have with capitalism.