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The Second Law of Value
Authoritarian Economy: The Hallmark of the Kshatriya Class
The Warrior Class creates Authoritarian Economies where capital and trade are controlled directly by the leaders.
- The economy exists to supply the palace and the army, not to enrich merchants or empower peasants.
Examples of an authoritarian economy are:
- Feudalism: The king grants land to a lord (a vassal) in exchange for military service. The lord then extracts labor and produce from the peasants (serfs) who live on that land. The serf cannot leave, cannot own the land, and cannot sell his produce freely. The entire system is a chain of command, not a network of exchange.
- Modern Military Dictatorship
- The Soviet Kolhoz System: The state owns all land. Farmers are assigned to collective farms and ordered to deliver fixed quotas of grain to the state, often at prices below production cost.
- North Korea’s Songun (Military-First) Economy: The military commands all resources. Civilian production is subordinated to military needs. Trade is minimal, and markets are suppressed.
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