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Solid point. Hard to rebut.
An interesting topic to me is what the "right" level of organization is. The ecosystem is not just a bunch of single-cell organisms transacting with (or against) each other; it aggregates at multiple levels. Multiple-cell organisms abound. Coase's theorem frames it in terms of transaction costs. And I think we've seen that tech increases the allowable complexity / the carrying capacity, even if bullshit jobs emerge.
So whatever the size and scope of government should be, clearly it's different now than 50 years ago, right? But what is it?