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It is not the case that Despotic governments are inherently self-corrupting and unstable.
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1.
Property is not secure in a despotic state, so commerce will not flourish and the state will be poor.
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2.
The people must be kept in fear through punishment, but punishments must escalate over time until threats lose their force.
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3.
The despot's character prevents effective rule: since every whim is granted, the despot never develops intelligence, character, or resolution.
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