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.

Exploitation doesn’t contribute to the creation of wealth.  Yes, states have expanded in the past, but that’s from the fact that they were wealthy prior to the expansion.  A poor state can’t expand, it’s impossible.  States must start out small.  Increasing exploitation ruins societies.  I’m aware this isn’t taught in school, but the colonies seceded from England.  It was separation, not a revolution.

Small states adopt a much freer policy than large states.  In the best thing ever written on the state, Nietzsche pointed out “Power they seek for, and above all, the lever of power, much money—these impotent ones!”  He also pointed out that that centralization will eventually lead to the creation of the “European Union.”  It becomes easier to use paper currency.  This can then be inflated at will.

Supporters of freedom will support separation.  As there are more states with different levels of exploitation.  This means the exploited will compete to get more members.  To get new members they will have to lower the level of exploitation.  Even today, the small states that exist could be conquered by their larger neighbors.  If that happens, we make our way back to our current situation.  Like Murray Rothbard said: at least we’d have a nice vacation.

Reference

Hans-Hermann Hoppe; Democracy—The God That Failed

Friedrich Nietzsche; Thus Spoke Zarathustra