WalMart controls what its employees can wear, what they can do in their freetime (no drugs for example), when they get holiday (lol, as if they even get a signficant amount of holiday...). Walmart has rules on what customers can wear in their stores (no bare chests, no bare feet). WalMart makes all employees make a "WalMart pledge" which is every bit as cloying as the pledge of alleigance.
All of those rules are an extension of the property Rights of WalMart's stockholders. Just like you can set rules in your own house, so is the case for your place of business, as long as those rules are announced to the people they will affect in advance (which things like smart-phones can make ever-easier to keep track of). If WalMart is so bad then why do millions of people choose to work, shop, partner, and invest in it there voluntarily?
Walmart can alter its employees hours at will.
That can be prevented through contractual agreements, and if WalMart violates the contract then it becomes void and it may be required to pay restitution (and a single incident of WalMart screwing one employee would be enough to tarnish its reputation). And of course workers aren't typically obligated to any chronological commitments - they can quit at any time. A government, on the other hand, can change its laws at will and there's nothing you can do.
Admittedly WalMart doesnt have an army. HOWEVER, in your perfect free market it obviously WOULD have an army (to protect its stores from competitors and 'criminals', it might even have conscription from its employees (there would be nothing to stop it).
Yes, in a free market WalMart would have its own security guards, which may be armed, but it's not cost-effective for private entities to keep too a large a security force when contracting with local neighborhood / private highway security providers would be much more efficient, and better from the PR point of view as well. There will be many small private defense agencies, private bounty hunters, as well as regional agencies that provide things like on-demand helicopter support. Decentralization means if WalMart decided to "become evil", the vast majority of its stores and/or their security guards simply won't go along. Who wants to go on a campaign to certain death under the flag of WalMart?!
Furthermore, future trends in military and security technologies suggest a divergence of defensive and offensive weapons, with the latter gradually becoming taboo. Potential liability / insurance costs mean private security has a far greater incentive to invest in "less lethal" defensive weapons than the state does, so you'll see a lot of innovations like remotely controlled Taser / "sleeping gas" guns that are hidden above the store's ceiling but can quickly bust out and stop the bad guys if/when they'll ever become needed. And then you have passive security technologies like vast arrays of networked security cameras, live satellite tracking of robbery getaway vehicles, special tags on small items that are worth stealing, bulletproof suits (and other surfaces - "in the future everything is bulletproof"), impenetrable doors, remotely activated gates, all cash above $X kept in a 50-ton safe with a one-way opening that can be inserted into but cannot be opened except with a special top-secret truck that comes once a week, etc, etc, etc.
So the private sector can defend itself quite well without ever becoming even a small fraction as dangerous as the state. If a company ever starts buying too many lethal weapons, it will be ostracized out of business pretty darn fast because doing business with it would be like wearing a Hitler t-shirt in a Jewish neighborhood! We live at a point in human history where petty crime is quickly becoming a problem of the past - it will always exist, but only as a marginal issue. The new technology that makes crime next to impossible to get away with will either serve legitimate property owners and be a force for good, or it will serve governments, if they still exist, and we'll find ourselves in a global Big Brother dystopia from which there can be no escape! (And when the globes come off, millions might die!)
Everything you hate about government, a corporation could and would do, but without the same limits or accountability, in a true free market - why wouldnt it? Detention without trial? why not? torture of competitors? why not? etc etc.
What you are saying is the complete opposite of reality. A corporation can't as much as rip you off by a penny in change without you having recourse, and the rest of the world would side with you (even if you have no proof, because, c'mon, why would a reputable person make a fuss over a penny). A government, on the other hand, is a religious concept in most people's minds, and is thus able to get away with anything without even taking its gloves off.
Choice is only true choice if you have perfect information. If you dont, then you aren't really making a choice: consider this, If I told you you could shop at shop A or shop B, and that shop A was always cheaper and better quality, and that shop B's products were dangerous and their employees evil, if you had no more information to go on, you would 'choose' shop A. But what if everything I told you was a lie and the reverse was the case?
(Having only two shops to choose from on a planet with 6+ billion people and ever-cheaper jet-flight is a very rare situation, and one that government isn't at all likely to help with, but, fine, I'll play along.) Why are you the only authority on how shop A and shop B compare? I can ask somebody else, or I can comparison-shop for myself, and if I find out you are lying then I can expose you. I doubt that shop A can afford to pay professional liars more than their identity is worth, especially since rational people will learn not to trust information that comes from a source whose reputation cannot be verified.
Without government regulation and a legal system bringing that information to light and preventing false information, choice is an illusion.
Government does the very opposite - it hides information. For example, the source code for a dozen Microsoft products leaked onto a small hacker BBS once, but the FBI was able to contain the leak by arresting a dozen people and now it's nowhere to be found. Can you click on any spot on Google Earth and find out who owns that land? No. You know why? The government monopoly keeps the property records and limits access to them, while in an Anarcho-Capitalist society being able to prove that you own property would pretty much necessitate open source property databases. Want to have a look at all those
trillion-dollar military projects your "taxes" are paying for? Too bad, they're "top secret"! Video from the pentagon on 9/11? Four blurry frames released after more time than it takes to animate a Disney feature! Security video confiscated after the OKC bombing? Still not released! Etc, etc, etc. (And I won't even make any jokes about the president's birth certificate...)
The government also lures people into a false sense of security, which discourages them from seeking out information for themselves. In a free market people expect the businesses to compete for consumers' trust, which means making information available to be verified by independent sources. No transparency, no sale.
My previous points apply - viable alternatives are meaningless if you cant accurately assess them. Furthermore, there is nothing to stop all the alternatives being taken over by the largest of them, leaving no other options.
The only monopoly that has ever existed is government - for everything else there has always been a choice. Government force through scams like "patents" and Big Business having the lobbying advantage in creating new regulations also limits competition quite a bit. There have been times when there was only one "best" choice and that company achieved a great market share, but only by earning that share qualitatively, and when it stopped innovating or raised prices its market share quickly diminished.
Finally, there is nothing to stop all the alternatives forming a cartel to fix prices and quality at the most profitable (but not most efficient) levels.
Private sector collusion is a common government-promoted scare tactic, but it's a very rare phenomenon in real life, because market observers always catch on to what's going on quite quickly, and the reputation of the companies involved falls quite a bit, while any company that refuses to join the cartel and continues to sell better / cheaper products is seen as a hero and quickly gains market share.
And given a sufficiently informed consumer base, the tactic of "flooding the market" becomes a form of corporate suicide as everyone stockpiles products while they're cheap and sells them when the prices go up, thus getting the company's profits in its stead. The competitors will also see that the company is flooding the market and simply wait them out by temporarily switching their production to something else. As the economy becomes more service-oriented and manufacturing processes become ever-more sophisticated and agile, the ability of a company to rapidly (re)enter a certain market when its competitor starts slacking improves.
Edited by Alex Libman, 24 April 2010 - 03:38 PM.