A state is a territorial monopolist of compulsion—an agency which may engage in continual, institutionalized property rights violations and the exploitation—in the form of expropriation, taxation, and regulation—of private property owners. 1 Assuming no more than self-interest on the part of government agents, all states (governments) can be expected to make use of this monopoly and thus exhibit a tendency toward increased exploitation. On the one hand, this means increased domestic exploitation (and internal taxation). On the other hand, and this aspect in particular will be of interest in the following, it means territorial expansionism. States will always try to enlarge their exploitation and tax base. In doing so, however, they will come into conflict with other, competing states. The competition between states qua territorial monopolists of compulsion is by its very nature an eliminative competition. That is, there can be only one monopolist of exploitation and taxation in any given area; thus, the competition between different states can be expected to promote a tendency toward increased political centralization and ultimately one single world state.