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It is not the case that A despot who fully disposed of subjects arbitrarily would destroy the productive capacity and loyalty necessary for the regime's own survival.
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Reasons For
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Reason for
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1.
Fear alone can sustain regimes for generations without productive capacity; subjects produce under coercion even when incentives are destroyed, as in Soviet gulags.
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2.
Despots can maintain loyalty through monopolized access to survival goods (food, shelter) rather than predictability, making arbitrariness compatible with regime persistence.
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3.
Some of history's longest-lasting despotisms (certain sultanates, dynastic autocracies) combined arbitrary rule with cultural/religious legitimacy that transcended rational calculation.
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Reasons Against
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Reason against
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1.
Economic productivity requires predictable property rights and investment incentives; arbitrary seizure destroys both, reducing tax revenue and regime resources.
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2.
Loyalty among elites and administrators depends on reasonable security; total arbitrariness causes defection, conspiracy, and institutional collapse from within.
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3.
Historical despotisms that survived (Ottoman, Chinese imperial) maintained some rule consistency; those with pure arbitrariness (certain warlords) collapsed quickly.
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