Why The State Can't Discriminate
My position on racial discrimination and segregation is essentially based on the following premises: (1) on a personal level, I'm opposed to racism (2) however, if an individual legitimately owns a given piece of property, they have the liberty to exclude other people from using that property (3) that being siad, in terms of hiring employees and a buisiness owner's relationship with customers, racial discrimnation and exclusion in general is suicidal in the long-term if said buisinesses are in free competition with non-discriminatory or less exclusive buisinesses (4) therefore, a free market process itself will tend to weed out the racists over time and (5) the proper solution to the issue is social or economic and should be persued through more direct action - civil disobedience, social pressure, education, mass-boycotts, out-competing the racists, the discriminated groups forming their own organizations, and so on.
However, this is only in the context of discrimination of members of the lay public. What about discrimination or exclusion by the agents of the state? Should the exact same logic be applied to the state? I'm compelled to say "no" because the limited principled defense of the liberty of the discriminator is predicated on the requirement that they justly own the property to begin with, and the state does not legitimately control the territory. If the state is exclusive or discriminates, it would be doing it with stolen resources, what are in fact the very resources of the victims of the exclusion or discrimination. To try to come up with a libertarian defense of state discrimination would be to make the error of treating the state as if it were a legitimate private property owner, which would legitimize nationalism. I'm not sure if this error should be considered a manifestation of "vulgar libertarianism" or if it deserves another term in its own right.
If the state enforced discrimination as being mandatory within the territory or discriminates over who is allowed to use state property and services, what we would have is institutionalized segregation. The state would be asserting control over how other people use their own property and excluding people from use of what is actually not justly owned by the state agents or possibly even what is really partially the product of what was stolen from the person being excluded. To varying degrees, this is more or less what the individual states did during the period of blatant institutionalized segregation in America. The state did much more than defend private owner's right to be exclusive, since the state was exclusive itself and widened discrimination into community-wide and state-wide legal precedents which essentially established discrimination as a norm.
Of course, when institutionalized segregation gave way at least partially to intstitutionalized integration, the federal government started acting as a discriminator in other respects. It started creating and enforcing precedents making it mandatory to be inclusive and also to start to be more exclusive towards other groups. To some degree, some non-racist people have ended up being persecuted by anti-discrimination or forced integration laws, which has merely added fuel to the fire and made people more sympathetic towards racism. And affirmative action is mandated discrimination all the same, only geared towards different groups. Anything remotely resembling a racial quota is discriminatory and in fact racist to the core.
Immigration controls and political border enforcement are essentially institutionalized segregation, though not always based strictly on race. Some people try to defend a closed border policy on the basis of private property rights and by comparing the nation to a home. But such an analogy is fallacious and highly misleading. The state's agents do not justly control the entire territory. And the entire nation is not "ours", we each own individual plots of property within it. While an individual who justly owns a given piece of property may legitimately exclude others from use of it, they do not have the legitimate authority to demand that their neighbor do the same. Noone can legitimately exclude people from other people's legitimately aquired property. And this is precisely what the state would be doing by trying to exclude someone from entering the entire "nation" and effectively outlawing individual owners from allowing others to use their property. It also would constitute a barrier to entry to unused/unowned property.
The implications of treating the state as a legitimate private property owner are very totalitarian when it comes down to it, and of course such a view inherently legitimizes the state. If the entire territory is legitimately controlled by the state, then everything within it can be used and distributed however state agents want, and everyone within it may be treated as pawns. But the fact of the matter is that state institutions are a product of the mass-expropriation of land (which eventually manifests itself in the coercive territorial monopoly) and intergenational extortion (which eventually manifests itself as taxation). In a certain sense, the state is merely a gigantic and institutionalized case of absentee landlordship. Everyone within the territory produces everything while the state claims a piece of their production and excercises control over everything as if it were the legitimate ownership of the entire territory.
This is why the state must be treated as a criminal organization, a criminal organization that has stolen everything that it controls. The only difference between the state and other criminal organizations is that it is highly centralized, enjoys a massive territorial monopoly and has an ideological cloak of legitimacy. In order for justice to truly be served, the victims of this criminal organization have every right in the world to take back what was stolen from them and their ancestors. Such a criminal organization should not be defended as if its agents are at liberty to determine how stolen property is used, and as a consequence it is absurd to try to legitimize such a criminal organization excluding people from using what was stolen from them or what currently has no legitimate owner at all.