Too high liability for protection insurance

No, this is not true. It is also clear that you have not read What Law Is or A Praxeological Account of Law, despite the fact that I have now recommended it twice to you. Clayton lays down a solid argument on the nature of law. It should be of great help to you.

The laws of what organization? The thieves guild or the assassins guild? You have still to provide a source of where an anarcho-capitalist has claimed that thieves should compete against honest people. And what do you even mean by such a statement?

Let’s talk about some unlawful organizations, such as the mafia. The mafia has truces and agreements with each other. They do not engage in all out war with each other or the state. There is also no one mafia family that rules over the others. So, if unlawful organizations can come together and reach agreements, what does that say for the potential for lawful organizations? I would say the potential is quite good.

That anarcho-capitalists do not commit suicide against the state is no reason to say that the idea is wrong. All it shows is that there is an organization so powerful that it currently is able to subjugate the general population. However, a great source of the American State’s power comes from the belief of “legitimacy”. Various populations throughout history have overthrown governments because they considered the rulers to no longer be legitimate. That there is no current revolution in America does not mean that the ruling class is protected forever.

Don’t forget the wars that the American State has fought. America lost in Vietnam. The American State failed to win. Look at the current wars. Afghanistan and Iraq are from conquered. They are occupied, and the American State is spending massive amounts of resources to “win”. People with far less resources are still fighting. Now, you might say, if only the American State just nuked them and was done with it, then it would have won! But who would be left to rule? No, the State requires a captive population. Without it, there is no way for the ruling class to survive.