The State is that organization in society which attempts to maintain a monopoly of the use of force and violence in a given territorial area; in part… - Murray N. Rothbard

We have seen in detail above that the ultimate earnings of factors go to the owners of labor and of ground land and, as interest, to capitalists. If land can be capitalized, does this not mean that land and capital goods are “really the same thing” after all? The answer to the latter question is No.25It is still emphatically true that the earnings of basic land factors are ultimate and irreducible, as are labor earnings, while capital goods have to be constantly produced and reproduced, and therefore their earnings are always reducible to the earnings of ground land, labor, and time.

While everyone else must pay their debts or go bankrupt, the banks are permitted to refuse redemption of their receipts, at the same time forcing their own debtors to pay when their loans fall due. The usual name for this is a “suspension of specie payments.” A more accurate name would be “license for theft;” for what else can we call a governmental permission to continue in business without fulfilling one’s contract?

Social power is the power over nature, the living standards achieved by men in mutual exchange. State power, as we have seen, is the coercive and parasitic seizure of this production — a draining of the fruits of society for the benefit of nonproductive (actually antiproductive) rulers.