And when the private security demands all their corn for a year of protection because there is no one to stop them, what do they do in year 2…?
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You should go to the gym so you are less pessimistic and more solution-oriented
If you actually care read chapter 12.
https://mises.org/online-book/new-liberty-libertarian-manifesto/chapter-12-public-sector-iii-police-law-and-courts/police-protection
Same thing you do if a shitty restaurant demanded a year's income to not poison you. You go to another restaurant. You hire another security firm. Obviously the honest security firm will be infinitely more efficient and powerful than the scammers trying to get by on theft