If Hobbes believed people to be driven by greed and ambition, then why did he believe in an absolute monarchy? The king is human too. There had to have been some sort of contradiction?

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Hobbes believed that people came together to establish a sovereign ruler—not necessarily an absolute monarch, though that was certainly Hobbes's preference—to protect themselves from each other. According to Hobbes, human beings' natural greed and selfishness meant that they couldn't live with each other in any kind of stable society unless they banded together to form a sovereign power. The sovereign would then protect the people's lives and property in return for absolute power.

The sovereign himself still remains in what Hobbes calls the state of nature, the primitive condition the people left behind when forming a government. But the crucial difference is that the sovereign is now in a position to offer the kind of protection for life and property that didn't previously exist. He is every bit as selfish and greedy as anyone else, but because he is endowed with the natural rights of his subjects—voluntarily given to him in the act of establishing civil society—and the power that it brings, he's able to bring order and stability where previously there was constant strife and lawlessness.

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Hobbes believed in an absolute monarchy exactly because people are driven by greed and ambition.  They need to give complete power to the sovereign so that they will not destroy one another through their greed and ambition.

This is not to say that the sovereign was perfect or without greed.  But the sovereign was just one person.  Therefore, the sovereign would not have to be in conflict with anyone else.  There would be no "war of each against all."  Instead, the sovereign would be pursuing his own self-interest.  In doing so, he would do things that would generally help his country.  Some individuals might at times be hurt, but the overall good of the people would be served.

The main point, then, is that the sovereign is one person and will not tear the society apart by pursuing his greed and ambition.  If, on the other hand, everyone is acting on greed and ambition, society is torn apart.

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