Summary of Benefits of Turning States into Private Companies

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The idea that states should be run like businesses do not come from libertarians only.

VOC and EIC is also run like businesses. It has a clear goal. Both are not libertarian. VOC conquer the whole Indonesia and EIC conquer the whole India.

So even if a country is not libertarian, running it like a profit seeking entity have some benefits. Corporations have very clear measurable goals. We can check the ROI. The benefits are:

  1. Less poverty. You don’t give extra shares for some guy producing 40 children. In normal democracy, an idiot producing 40 children will have 40 new voters running your life voting for more idiocy, tax, and welfare. 1 Religious terrorists producing 40 jihadist will not have to blow themselves up again. They just breed and vote for anti blasphemy laws. In fact, many terrorism in US happens because somebody breed those terrorists.
  2. You don’t have to fear immigrants so much if your state max profit. Only useful immigrants will be admitted. Think about it. Say you have a house, and you accept 10 starving children. Under “democracy” those 10 children will simply vote you out of your own house. Now states have owners. You can accept workers, deal with them fairly, and they will never rule your state unless you agree to it or buy more shares.
  3. Profit seeking corporations can easily bump their GDP by breeding their most productive tax payers. Imagine a world where Bill Gates and Jeff Bezos produces 40 children. At the same tax rate we can give money to welfare parasites easily. Not that we should. I prefer lowering tax rate. But each welfare parasite can have more if they produce less children and Bill Gates produce more.
  4. More diverse choice. Your friends would love those. If cities are privatized arguing whether drug should be legal or not will be as pointless as arguing whether Burger King is as good as Pizza Hut. He like LSD? DMT? Weed? Just go to cities where all those legal. Fear that his sons would try LSD? Go to where it’s illegal. What about dangerous drugs like fentanyl or crocodile? Well, a profit seeking state will correctly judge whether those drugs bring more tax than problems. In democracy, histeria governed. US have prohibition of alcohol that took years to repeal. Is legalization good or bad? For who? Now each can go where they like.
  5. You know where your country is run well or not. This is why VOC and EIC can control large chunk of life. Normal countries always fight over what’s “good”. In Indonesia, I’ve heard there is a story about country that fight. Basically the purist muslim fight the moderate one. Result? They both got swallowed by the dutch. Not happening if a country is privatized.
  6. The rest of the country can experiment to see which one is best. Say someone try libertarianism and georgism. Well, that combo may work well. The rest of the country can follow.
  7. Easier to move around. Under “normal” democracy, shareholders and customers are combined into citizens. Often they should have different interests. What’s good for one citizen is bad for another. Look at legalization of drugs or anti blasphemy laws. Under corporate governments, any share holders that disagree can sell shares and any customers that don’t like the product can go to other shop.

The idea is not just a theory. It’s been tried very successfully. EIC and VOC governed India and Indonesia respectively. Also they are not necessarily more cruel than kingdoms they replaced. However, I do not like VOC and EIC. I prefer smaller states that are privatized and still kow tow to big normal states for protection like normal corporations.

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