What is the difference betwwen these two scenarios?

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Geez, if you're going to come up with a fantasyland edge case...

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So if 51% of the people want to kill the other 49%, it's just part of democracy, right?

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It's okay if you do it, though, right? And I don't think it's all that 'fantasyland' imagining a society where one person, or a small group of people, are able to get enough wealth to corrupt them and want power. It happens all the time, with states and before there were states. I'm not all that big a fan of the concept of the state, but if it's a choice between A-C and a western state, I'll choose the state.