Red indicates exact quotes from Hans-Hermann Hoppe’s 2001 book “Democracy: The God That Failed.”
ANDREW: Let’s imagine that a future libertarian society has been established, and security and justice are provided by competing insurance companies. What will happen if two different people, covered by two different security GLOs, disagree about what their rights are?
CODE NAME CAIN: The two people would find an independent arbitrator that would be the unanimous choice of both parties [251].
ANDREW: Suppose that one of the two parties is stronger, and so will likely outlast the other in a direct conflict. Wouldn’t that party prefer to refuse all arbitration and, during the delay, squeeze the other party into submission?
CNC: No.
ANDREW: Suppose someone annoys you, and you pay their GLO a sum of money that is significantly more than the present value of that person’s future insurance payments. Would the GLO kill the person for you?
CNC: No.
ANDREW: Suppose that one security GLO is much stronger than a competing GLO, and it wishes to expand its market share. Will it strategically assassinate clients of the weaker GLO in order to advertise its superior security capabilities?
CNC: No.
ANDREW: These scenarios all appear plausible to me. Why are you sure they won’t happen?
CNC: Security GLOs will understand that the sort of aggressive behavior you describe is economically irrational. In fact, insurers will [not engage] in any form of external aggression because any aggression is costly… implying the loss of clients to other, nonaggressive competitors. Insurers will engage exclusively in defensive violence… [287]
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