When governments become top shareholders, corporate focus shifts from pleasing customers to securing political favor and appropriations. R&D budgets are reallocated to lobbying, and market competition devolves from building the best product to playing the policy game most effectively, strangling innovation.

Ben Thompson argues that AI companies like Anthropic cannot operate in a vacuum of ideals. The fundamental reality is that laws and property rights are enforced by the state's monopoly on violence. As AI becomes a significant source of power, the government will inevitably assert control over it, making any private company's defiance a direct challenge to the state's authority.

A ban on superintelligence is self-defeating because enforcement would require a sanctioned, global government body to build the very technology it prohibits in order to "prove it's safe." This paradoxically creates a state-controlled monopoly on the most powerful technology ever conceived, posing a greater risk than a competitive landscape.

Counterintuitively, a genuinely free market is not a lawless one. It requires government restrictions to prevent predatory multinational corporations from creating monopolies. Without such regulations, monopolies would destroy the fair competition that is the basis of a free market.

As AI evolves into a significant source of power, private companies developing it cannot ignore governments. Ben Thompson argues that the state, defined by its monopoly on violence (the "people with guns"), will inevitably assert control over any technology this powerful, overriding corporate autonomy.

Governments originate from a collective need to organize and control violence for defense. However, this very concentration of power is predisposed to become oppressive, reflecting a cyclical pattern in human history where freedom is lost to tyranny, regained, and then threatened once again.

Socialism's top-down control ignores market incentives, leading to predictable failure (e.g., rent control causing building decay). When people protest these failures, proponents who believe they "know better" must resort to coercion and violence to silence dissent and maintain power, rather than admit their model is flawed.

Command economies inevitably rely on force. In a free society, disagreement is resolved through persuasion. In an authoritarian system where directives are absolute, dissent is ultimately met with force. Adopting a top-down economic model means accepting state-sanctioned violence as a necessary tool.

To define government's role, one must first define government itself. Its only unique characteristic is the legal power to apply force. Therefore, its functions should be strictly limited to things society needs but individuals cannot accomplish voluntarily, such as national defense, border control, and some basic infrastructure.