[bkholdem]

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It is the position of ACists that in the long run, illegitimate businesses cannot compete with legit businesses. An illegitimate business being one that relies on violence, theft, or defrauding customers in order to make money (other things too, but those would be the main three, I'd think). Makes sense.

But then logically, it should follow that all illegitimate governments will ultimately fail, as they rely on taxing the citizenry (theft), among other things. And history will show that all illegitimae governments DO ultimately fail.

To me, the problem arises with the word "ultimately." Governments can take the better part of a millenium before they finally go under. If an illegitimate government can last that long, why can't an illegitimate private company last that long?

Seems to me that if the mafia has me by the balls, and it won't let go until my great great great grandchildren finally come around, then this really isn't much different from a place where I have to pay 35% of my income for the government to leave me alone.

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Assuming what you say is true still you must recognize this:

No mafia will be one unitifed group with a single leader and millions and millions of soldiers with a territory of the USA. There will always be competing mafia's in different area's to keep the negative impacts low.

Moreover, on the local level citizens can band together and stand up to the mafia (even if stealthily). This can not be done with government because the government can call in unlimited resources, something the mafia can not and will not do.