Summary:

Paul C. Martin contradicts Heinsohn and Steiger’s theory by emphasising that, to come into existence, property as a de iure institution requires the prior existence of a State. The State, in turn, needs an armed force to come into existence. Thus, the ultimate “foundation of the economy” is the weapon: possession and property coincide because the possession of power guarantees the property of power. The latter results in the first “property premiums” of tribute (external premium) and tax (ternal premium). Those who pay these premiums discharge their debt as “interest”, which emerges ex nihilo and not, as maintained by Heinsohn and Steiger, from private contracts.