There is an interim solution. It’s called secession and political decentralization. Small states must be libertarian, otherwise the productive people will desert them. Desirable therefore is a world made up of thousands of Liechtensteins, Singapores and Hong Kongs. In contrast, a European central government – and even more so a world government – with a ‘harmonized’ tax and regulation policy, is the gravest threat to freedom.
The Western ‘welfare state model’, ‘socialism light,’ will collapse just like ‘classical’ socialism – of course, I can’t say whether in five, ten or 15 years. The key words are: state bankruptcy, hyperinflation, currency reform and violent distribution battles. Then it will either come to a call for a ‘strong man’ or – hopefully – a massive secession movement.