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It's an interesting idea rob. I do agree with your sentiment.
I'm your world through I think we'd all been to be communists at the community level.
A few dozen families would need to get together for common protection and support.
I think you'd see a massive regression in societies technology, health care and all the modern conveniences.
People wouldn't have the confidence to start businesses I don't think.
From a review found at the Mises Institute website.....
This book is very radical in the true sense of that term: it gets to the root of the problem of government and provides a rethinking of the whole organization of society. They start at the beginning with the idea of the individual and his rights, work their way through exchange and the market, expose government as the great enemy of mankind, and then—and here is the great surprise—they offer a dramatic expansion of market logic into areas of security and defense provision.
Their discussion of this controversial topic is integrated into their libertarian theoretical apparatus. It deals with private arbitration agencies in managing with disputes and criminality, the role of insurers in providing profitable incentives for security, and private agencies in their capacity as protection services. It is for this reason that Hans Hoppe calls this book an "outstanding yet much neglected analysis of the operation of competing security producers."
The section on war and the state is particularly poignant. "The more government 'defends' its citizens, the more it provokes tensions and wars, as unnecessary armies wallow carelessly about in distant lands and government functionaries, from the highest to the lowest, throw their weight around in endless, provocating power grabs. The war machine established by government is dangerous to both foreigners and its own citizens, and this machine can operate indefinitely without any effective check other than the attack of a foreign nation."
Also overlooked is the Tannehill's challenging plan for desocialization or transition to a full free society. They argue against privatization as it is usually understood, on grounds that government is not the owner of public property and so it cannot sell it. Public property should be seized or homesteaded by the workers or by people with the strongest interest it in, and then put on the open market. If that sounds crazy or chaotic, you might change your mind after reading their case.