The Size of the Social Unit: Centralization

#economics #smallstates #centralization

A state is an entity that has a territorial monopoly of exploitation. This takes the form of: legal institutions, taxation, counterfeiting, and more. States can try to increase the level of exploitation, but it stands to lose its subjects. An increase in exploitation is most effective by states expanding their territory. It becomes more difficult to vote with your feet the larger the state becomes. There is a tendency to increase centralization.

The logical conclusion to the increase in centralization is the world state. This can be seen in exit taxes, the push for a world tax, a push for a universal paper money, and the like. The more likely it will be that people move to an area that has lower levels of exploitation the more states there are. It’s much more difficult to vote with your feet if everywhere you go is under the same levels of exploitation.

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