Harry Potter and the Military Industrial Complex
this post was submitted on 23 Jul 2024
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True enough, the capabilities of Magic haven’t been explored enough canonically to disprove that - but if the government learned of Magic, the first thing they’d do is subvert some wizards to their side, who might be able to counteract them - in many ways, it’s a battle of statecraft as it is of actual power.
I don't disagree, but I also don't think that that's enough on its face to determine with any certainty that muggles would "win" whatever conflict arose. An army would definitely have a tactical advantage, but wizards are presumably educated in order to be self-sufficient and many of the creature comforts they're accustomed to can't actually be acquired with muggle resources - at least from what we see in England, they have their own political systems, press, and currency.
But they were able to setup the core of their commercial and governance infrastructure in the middle of London, with no particular notice from muggles - not to mention, we know that the government already knows about wizards (MoM liaises with the PM). So there must be a quid pro quo already in place, with the government tolerating and aiding in the existence of a semi-independent polity in their heartlands in return for unspecified benefits, probably defence against foreign wizards.