Schlong of the OPPRESSOR

[The One and Only...]

Originally Posted by Chojin

War is profitable or we wouldn't have been doing it. Your argument is stupid because you're assuming that people aren't already greedy for some reason.

War is profitable in Statist systems because they can coerce additional funding from it's citizenry in order to cover the additional costs added from loss of assets. In addition, there is no alternative to the State racket in so far as you remain in its domain. A PDA, by comparison, would have to raise prices for its services in order to pay for the war, which would of course lead to desertion by customers in favor of cheaper alternatives.

Now, you may counter that a private fractional-reserve bank might loan capital to a PDA engaging in war to be paid by interest. I'll put aside for a moment that fractional-reserve banking is considered fradulent by many anarcho-capitalists, since I don't share this view. One must consider the different circumstances under which "war" between PDAs would take place. Recall that since no territorial monopoly has been established, such an act of war would necessarily create conflicts with all other firms providing services in the area. The likelihood is, then, that those forces will create an alliance and eradicate the aggressing firm, for their combined capital is a far greater pool than that of the rogue PDA. In addition, what bank would ever loan capital to such an aggressive firm in the first place, for what assurance would said bank have of being repayed without any outside enforcement? At best, such arrangements would have to be short-term and with high interest, and the spoils of war could hardly be able to cover all liabilities in adequate time; for the beginnings of the State is that of marauders who realized that, if they kept their conquered peoples alive instead of just killing them and taking their possessions, they would ultimately profit more in the long run.