I have always been fascinated with libertarianism, and even describe myself as a semi-libertarian (i.e. I am sympathetic to the commonly held views of libertarianism, loosely stated: less government is good government). However, I admit to being one of those who believe that it would never work in the real world (although I admit I cannot prove this assertion to be true, and I could be wrong).
In that vein, I have a few very common, real world situations in which I fail to understand how the libertarian principles you advocate could be implemented and remain internal self-consistent. This may simply be my ignorance, I have tried to follow what you have written by have not read it all.
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I choose to opt out of your government by association. My neighbor does not. It is my belief that small amounts of pesticides (or say EMF) are hazardous to my health. I want my neighbor to cease and desist from use of said materials. He refuses. I shoot him (after all, he is trying to kill me by giving me cancer). How does the association respond? Can I shut down us of electricity throughout the world, as EMF does not have a limit, but travels onward forever, albeit at a reduced magnitude?
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I am an astronomer. The light pollution from my neighbors is preventing me from observing the heavens. I ask for the sky above my land to not be illuminated by their lights. They refuse (In fact, they cannot comply without turning off said lights and living in the dark, because of problems with atmospheric diffusion of photos). I shoot their lights out. How does the association respond?
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I purchase all the property around someone else and refuse access across my land. I offer to buy them out for ten cents on the dollar. Don’t laugh; this happens all the time (think range land and water access).
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I refuse access to any aircraft that want to fly across my land. Keep in mind that in the US commercial air travel was not possible until the US seized all airspace using eminent domain. Make this harder: I refuse permission for satellites to enter my airspace. Will the association shoot them down for me?
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Nuclear power plants. I think I can posit it as a fact that there is no nuclear operator that could afford the cost of remediation if a worst-case event occurs at a nuclear power plant (and also that no insurance company is going to sell insurance for it). Can I prevent a plant from opening for this reason, i.e. they are moving the cost of said event to me, since they will not be able to pay for it?
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Everything seems to be run by contract, and you suggest that we can get rid of the lawyers. Do you see a problem here? I would have to retain an attorney every time I went to the bathroom :-).
I appreciate your consideration of my questions, and I sincerely want to see a reply that shoots me down.