The city, Hoppe says, is a creation of merchants. It is a trading center, a marketplace. As such, it entails a mixing of people of different races, ethnicities, tribes, etc. who would otherwise have stayed with their own kind. In big cities “the most elaborate and highly developed system of physical and functional integration and segregation will arise. It will also be in the big cities where, as the subjective reflection of this complex system of spatio-functional allocation, citizens will develop the most highly refined forms of personal and professional conduct, etiquette, and style.” Because of this Hoppe denies that it is best that a single government rule a community even of the size of a city. “To maintain law and order within a big city, with its intricate pattern of physical and functional integration and separation, a great variety of jurisdictions, judges, arbitrators and enforcement agencies in addition to self-defense and private protection will come into existence. There will be what one might call governance in the city, but there will not be government (state).” (Democracy: The God that Failed, 176ff)
The merchant elite is the most likely group of people to tolerate and even encourage mixed marriages, though even such marriages will be among the perceived equals. This causes genetic “luxuriation,” as the inborn talents of different racial, ethnic, etc. elites are combined.
With the introduction of the state the form of which, Hoppe predicts, will most likely be a democratic republic, the one-size-fits-all coercive apparatus will cause forced integration between the city and countryside and within the city. This will cause only unnecessary strife (e.g., as a result of “monopolization of ‘public’ streets — whereon everyone may proceed wherever he wants”), and “all forms of ethnic, tribal, or racial tensions and animosities will be stimulated.” (180) This process of the creation of a monopoly of force within a city begins with the prospective monopolist’s playing the “race card” in order to “raise the racial, tribal, or clanish consciousness among citizens of his own race, tribe, clan, etc. and promise, in return for their support, to be more than an impartial judge in matters relating to one’s own race, tribe, or clan…” (178) It is not clear exactly, however, how this is supposed to lead to the establishment of a unified city government.
At the same time, Hoppe says, the decivilization set about by the government will cause mixed marriages among lower classes, leading to “genetic pauperization, a tendency furthered by the fact that government welfare support will naturally lead to an increase in the birthrate of welfare recipients relative to the birthrate of other members, in particular of members of the upper class of their tribe or race.” (180) (I don’t understand, however, why Hoppe thinks that mixed marriages are OK for the elites but not for the masses.) Conflict among classes will be encouraged by the now popular government. The elites, finding themselves outgunned, will head for the suburbs. As a result, “one of the last remaining civilizing forces will be weakened, and what is left behind in the cities will represent an increasingly negative selection of the population: of government bureaucrats who work but no longer live there, and of the lowlifes and the social outcasts of all tribes and races who live there yet who increasingly do not work but survive on welfare.” (182) As arbitrary state legislation is substituted for natural law, marital and intergenerational ties within families will be weakened. “After the race and the class card have been played and done their devastating work, the government turns to the sex and gender card, and ‘racial justice’ and ’social justice’ are complemented by ‘gender justice’.” Vices such as moral relativism, high time preference, dissolution of the family, hatred of the other run rampant. “Rather than centers of civilization, cities have become centers of social disintegration and cesspools of physical and moral decay, corruption, brutishness, and crime.” (184)
Conclusion. Hoppe’s point is that big cities are inherently, by their very nature, ungovernable by a single monopoly state. As always, our author’s solution is decentralization and market anarchy even within cities.