Its still a very blurry thing. But generally speaking…
We all know that the division of labor brings more goods for everyone, but the argument holds well only if there is enough capital to allow everyone to specialize in some job. No capital= no specialization=no society.
Mises spoke of the “optimal population level”, i.e. the population level that maximally uses all capital available. One more inhabitant would be unable to specialize in some line of production enough to bring in more goods that he consumes. That is, before such a population level is reached, every newborn is an asset to everyone: he will specialize and increase efficiency. Beyond this level, every human being is, materially speaking, a waste: he consumes more than he brings in. Malthus wins.
Now, suppose at some distant time in the past, the world population was, more or less, at the optimal level. Now assume that some strong environmental change destroys much capital but kills not so many people (a massive Biblical flood destroys irrigation networks, but people manage to flee). The population is now over its limit everywhere in the world. From here two things may happen: eith****er the population goes down, or else capital is increased.
So, we either have wars, genocide, criminality, starvation, disease, etc. OR people are turned into capital. They are no longer “employed” as free men, but as “machines”, slaves, adding to the capital stock. Metaphorically, people become cows.
Now that the “population” has decreased and the capital stock has increased, things are right. But what has happened here? Some men have lost their freedom, and are considered no better than cattle. Two classes of men replaced humanity. The State is born.
Note that “human capital”, unlike normal capital, increases over time, only with limited amount of maintenance (sustenance). As time goes by, the master class diminishes (relatively) and the slave class increases in numbers.
Only when the population shall go under its optimal level, some slaves will be freed to feed the hunger for labor.
It just so happened that most people are still slaves nowadays, as we still have a state. Only a massive influx of capital (or a massive reduction of population)can dissolve the economic roots of the State.
But again, this theory still needs a lot of elaboration.