> If we're doing this, let's look at the other extreme as well: We give all people, including children, nothing as they are expected to take responsibility for themselves. No education, no services, no law enforcement, no roads, nothing at all.

In that case, people will always self-organise such structures anyway. Even amongst the most failed of the failed states, eventually you will end up with at least someone claiming to be the chief law enforcer (of whatever kind), someone to look after the kids (i.e. education) while the rest works to provide for food, and some sort of fire brigade.

It will just be many orders of magnitude more inefficient than what a large government that governs more than a few dozen to hundred people can establish.