Economic Man
vs.
Political Man

The word "economics" comes from two Greek words meaning "home" + "law." Economics begins with feeding your family.

Franz Oppenheimer, in his book The State: Its History and Development Viewed Sociologically, distinguishes between "Economic Man" and "Political Man."

Who was Franz Oppenheimer?

Franz Oppenheimer was born on March 30, 1864 in Berlin; he died September 30 1943 in Los Angeles. This is not the Oppenheimer associated with the Atomic Bomb. Our Oppenheimer exposed the mythology of the "social contract" theory of the State, by showing its roots in conquest and violence.

Oppenheimer started out as a physician. Then he studied economics and wrote his PhD dissertation on David Ricardo. After accepting a call to serve as Chair for Sociology and Theoretical Political Economy at Johann Wolfgang Goethe University in Frankfurt/Main (the first chair dedicated to Sociology in Germany) a cooperative agricultural community of individual farms (called a "Moshav") was founded by Jews using Oppenheimer's blueprint. Oppenheimer later taught in Palestine. He fled Nazi persecution to Los Angeles, and became a founding member of The American Journal of Economics and Sociology.

Oppenheimer's book The State looks at the origins of this political entity:

"The State, completely in its genesis, essentially and almost completely during the first stages of its existence, is a social institution, forced by a victorious group of men on a defeated group, with the sole purpose of regulating the dominion of the victorious group over the vanquished, and securing itself against revolt from within and attacks from abroad. Teleologically, this dominion had no other purpose than the economic exploitation of the vanquished by the victors." 

"No primitive state known to history originated in any other manner. Wherever a reliable tradition reports otherwise, either it concerns the amalgamation of two fully developed primitive states into one body of more complete organisation, or else it is an adaptation to men of the fable of the sheep which made a bear their king in order to be protected against the wolf. But even in this latter case, the form and content of the State became precisely the same as in those states where nothing intervened, and which became immediately 'wolf states'." (p. 15)
Economic Man and Political Man

Oppenheimer made the compelling observation:
"There are two fundamentally opposed means whereby man, requiring sustenance, is impelled to obtain the necessary means for satisfying his desires. These are work and robbery, one's own labor and the forcible appropriation of the labor of others. Robbery! Forcible appropriation! These words convey to us ideas of crime and the penitentiary, since we are the contemporaries of a developed civilization, specifically based on the inviolability of property. And this tang is not lost when we are convinced that land and sea robbery is the primitive relation of life, just as the warrior's trade - which also for a long time is only organized mass robbery - constitutes the most respected of occupations. Both because of this, and also on account of the need of having, in the further development of this study, terse, clear, sharply opposing terms for these very important contrasts, I propose in the following discussion to call one's own labor and the equivalent exchange of one's own labor for the labor of others, the “economic means" for the satisfaction of needs, while the unrequited appropriation of the labor of others will be called the "political means." (pp. 24-25)
Albert Jay Nock introduced these concepts to American readers in his own book Our Enemy, the State.

h/t Wikipedia
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Albert Jay Nock and the Libertarian Tradition - Jeff Riggenbach - Mises Daily

One such question was, what is the nature of the state? Where did it come from? If the state was in fact useless for the purpose of improving human society what was it in fact good for? So he wrote a book. It's called Our Enemy, the State. It came out in 1935, after being delivered as a series of lectures at Nock's newly renamed alma mater, Bard College.  Our Enemy, the State is a true libertarian classic, one of those books you simply must read if you have any serious interest at all in the libertarian idea.

The state, Nock wrote,

did not originate in the common understanding and agreement of society; it originated in conquest and confiscation. Its intention, far from contemplating "freedom and security," contemplated nothing of the kind. It contemplated primarily the continuous economic exploitation of one class by another, and it concerned itself with only so much freedom and security as was consistent with this primary intention; and this was, in fact, very little. Its primary function or exercise was … maintaining the stratification of society into an owning and exploiting class, and a propertyless dependent class. The order of interest that it reflected was not social, but purely antisocial; and those who administered it, judged by the common standard of ethics, or even the common standard of law as applied to private persons, were indistinguishable from a professional-criminal class. …

The positive testimony of history is that the State invariably had its origin in conquest and confiscation. No primitive State known to history originated in any other manner … no primitive State could possibly have had any other origin. Moreover, the sole invariable characteristic of the State is the economic exploitation of one class by another.

Nock quotes the German sociologist Franz Oppenheimer, who described the typical primitive state,

in respect of its origin, as an institution "forced on a defeated group by a conquering group, with a view only to systematizing the domination of the conquered by the conquerors, and safeguarding itself against insurrection from within and attack from without. This domination had no other final purpose than the economic exploitation of the conquered group by the victorious group."

Nock wrote,

Any considerable economic accumulation, or any considerable body of natural resources, is an incentive to conquest. The primitive technique was that of raiding the coveted possessions, appropriating them entire, and either exterminating the possessors, or dispersing them beyond convenient reach. Very early, however, it was seen to be in general more profitable to reduce the possessors to dependence, and use them as labour-motors. … [This] modified technique has been in use almost from the beginning, and everywhere its first appearance marks the origin of the State. …

The State, both in its genesis and by its primary intention, is purely anti-social. It is not based on the idea of natural rights, but on the idea that the individual has no rights except those that the State may provisionally grant him. It has always made justice costly and difficult of access, and has invariably held itself above justice and common morality whenever it could advantage itself by so doing.

In essence, then, "taking the State wherever found, striking into its history at any point, one sees no way to differentiate the activities of its founders, administrators and beneficiaries from those of a professional-criminal class."

After all, Nock argued, there are two and only two means of making a living in this world. There's the economic means — earning it. And there's the political means — seizing it from someone else who has earned it. The state, Nock said, is "the organization of the political means."

Does this sound familiar somehow? Does it sound, perhaps, like the rhetoric of Mr. Libertarian, Murray N. Rothbard? Nock had an immense influence on Rothbard. He also had an immense influence, apparently, on another major figure in the contemporary libertarian movement, Ayn Rand. According to Anne C. Heller, whose biography of Rand, Ayn Rand and the World She Made, was published about a year ago, it was the theory Nock had adapted from Franz Oppenheimer that inspired Rand to write The Fountainhead.