By the way, I shared your friends' point of view. The ideology is not very popular yet. So there is no fix names.
However, according to http://www.usmessageboard.com/threads/why-i-think-the-state-itself-should-be-more-like-private-companies.739494/
Some possible names are
- capitalistic feudalism.
- capitalistic republic
- joint stock republic
- privatized competing states
- capitalistic provinces capitalism 2.0
- extending capitalism to states
- states with owners and shares and
- capitalistic colonialism
- corporate protectorate
- States privatization
- Joint Stock Republic
All names are not exactly the same though. Each captures a bit of an essence. For example, corporate feudalism stress the idea that the governor, which is a corporation, don't just rule but also "own" the "province".
Joint stock republic would be a privatized cities/provinces that have gone through IPO I guess.
Basically, the states are like corporations. The citizens are the share holders. The tax payers are the customers. The states can pretty much do many things (hence statism) but have to compete to get tax payers. (this will encourage some libertarian values, such as lower tax). Positive right libertarianism will like it I think.
One way to set that up is the following. Say California wants to be privatized. Californian citizens are free from income tax. But the state itself pay protection money to USA for military protection. Now, it's up to californian to decide how they tax the population. All californian residency is converted at shares. People coming to California and newborn babies do not automatically get shares. Shares must be bought or inherited or granted.
So shares are like citizenship. Except that if someone have 40 children, the citizen/shareholders will think, what? Our shares worth $100k per piece. Now someone just have 40 children and we have to give free shares for that diluting our ownership? No way.
Now the shareholders can embrace status quo and keep giving free shares to all born on certain places. If shares cannot be bought and sold too, it will be exactly like normal democracy. However, it's something that CEO and board of directors can decide rather than something sacrosanct set in stone.
Basically there are several people that share the same point of view. I will summarize them
http://www.libertariansforum.com/cgi-bin/freedom/YaBB.pl?num=1549518924/12#12 Like you this guy is also looking for a name
Another is someone in lesswrong
The idea that states should be run like businesses do not come from libertarians only.
VOC and EIC is also run like businesses. It has a clear goal. Both are not libertarian. VOC conquer the whole Indonesia and EIC conquer the whole India.
So even if a country is not libertarian, running it like a profit seeking entity have some benefits. Corporations have very clear measurable goals. We can check the ROI.
The benefits are:
- Less poverty. You don't give extra shares for some guy producing 40
https://www.telegraph.co.uk/news/newstopics/howaboutthat/11508271/40-children-by-20-mothers-the-feckless-father-who-insists-God-says-go-forth-and-multiply.html In normal democracy, an idiot producing 40 children will have 40 new
voters running your life voting for more idiocy, tax, and welfare. 1
Religious terrorists producing 40 jihadist will not have to blow
themselves up again. They just breed and vote for anti blasphemy
laws. In fact, many terrorism in US happens because somebody breed
- You don't have to fear immigrants so much if your state max profit.
Only useful immigrants will be admitted. Think about it. Say you
have a house, and you accept 10 starving children. Under "democracy"
those 10 children will simply vote you out of your own house. Now
states have owners. You can accept workers, deal with them fairly,
and they will never rule your state unless you agree to it or buy
- Profit seeking corporations can easily bump their GDP by breeding
their most productive tax payers. Imagine a world where Bill Gates
and Jeff Bezos produces 40 children. At the same tax rate we can
give money to welfare parasites easily. Not that we should. I prefer
lowering tax rate. But each welfare parasite can have more if they
produce less children and Bill Gates produce more.
- More diverse choice. Your friends would love those. If cities are
privatized arguing whether drug should be legal or not will be as
pointless as arguing whether Burger King is as good as Pizza Hut. He
like LSD? DMT? Weed? Just go to cities where all those legal. Fear
that his sons would try LSD? Go to where it's illegal. What about
dangerous drugs like fentanyl or crocodile? Well, a profit seeking
state will correctly judge whether those drugs bring more tax than
problems. In democracy, histeria governed. US have prohibition of
alcohol that took years to repeal. Is legalization good or bad? For
who? Now each can go where they like.
- You know where your country is run well or not. This is why VOC and
EIC can control large chunk of life. Normal countries always fight
over what's "good". In Indonesia, I've heard there is a story about
country that fight. Basically the purist muslim fight the moderate
one. Result? They both got swallowed by the dutch. Not happening if
a country is privatized.
- The rest of the country can experiment to see which one is best. Say
someone try libertarianism and georgism. Well, that combo may work
well. The rest of the country can follow.
- Easier to move around. Under "normal" democracy, shareholders and
customers are combined into citizens. Often they should have
different interests. What's good for one citizen is bad for another. Look at legalization of drugs or anti blasphemy laws. Under corporate governments, any share holders
that disagree can sell shares and any customers that don't like the
product can go to other shop.
The idea is not just a theory. It's been tried very successfully. EIC and VOC governed India and Indonesia respectively. Also they are not necessarily more cruel than kingdoms they replaced. However, I do not like VOC and EIC. I prefer smaller states that are privatized and still kow tow to big normal states for protection like normal corporations.