A state has a territorial monopoly over taxation.  All states want to increase their revenue, but there is a limit.  They must expand their territory to increase their revenue further.  A world state is the logical conclusion of democracy.  A state’s revenue will be at its largest if its territory encompasses the entire world.  Plus, a one world paper currency can be instituted and created at will.  A digital currency is the logical conclusion there, I digress.

It becomes more difficult to vote with your feet the larger a state becomes.  One could vote with their feet if states were the size of towns.  The states that are less exploitative will out compete their more coercive neighbors.  This becomes increasingly difficult as states expand their territory.  Voting with one’s feet is near gone.  Voting with one’s feet will disappear entirely under a world state.

A state can’t expand much unless it’s internally free.  There is less incentive to remain free as the territory expands.  There is increased centralization the larger a state becomes.  They must enlarge the tax base, and this is done by enlarging its territory.  The competition for tax base is an eliminative competition.  At most, quasi-states around the world will exist.  However, they will all be subject to similar decrees.

A free state will be able to expand against the more coercive state.  The freer state will have a reserve fund.   This fund is due to conditions in the past.  The fund will eventually run out.  The fund was built by conditions that are long gone.  It’s safe to say society will collapse.  The current trends can only be corrected by ideas.  Sadly, false ideas have won the battle.  There is hope.  Ideas can change overnight.

The logical conclusion of democracy is a one world state—and a one world currency.  The freer states will out compete the less free states and expand their territory.  States are in an eliminative competition with one another.  As a state expands, it will become less free.  Voting with your feet becomes difficult, if not impossible.  The reserve fund will be exhausted eventually.  When the reserve fund is exhausted, society will collapse.

Reference

Hans-Hermann Hoppe; Democracy—The God That Failed