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

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

Except the shitty restaurant has AK-47s pointing at you and has locked the doors.

What might be obvious to everyone else is that the endlessly more efficient thing for an organised group with guns (cartel) to do would be to get a monopoly.

And by the way you know you can already live in countries where cartels control things- Mexico or Somalia. Remind us where you live again?

But if you can provide a single historical or current example of where the general population refers to their cartels as ‘honest security firms’ I’m all ears.

All states are historical and current examples of monopolized cartels that will kill you just as assuredly if you don't pay up.