I must preface this response by stating that I have not seen the video as I am on a dial up line
It is my observation that both sides of the state/private debate have valid points, as well as shortcomings. In order to sort out the issues of how to live with each other in a sane and proper manner, it is essential that we identify and understand the base principles and the questions that they raise. This is something that is rarely addressed, yet without such knowledge in hand the best we can expect to accomplish are shots in the twilight.
The first thing we need to have in hand is the proper understanding of our places in this world and amongst our fellows. This is the most fundamental issue we face and it is the one that people understand the least and most frequently mistake.
Building on what I take as the proper understanding of the status of the individual, we come to the notion of "governance". Free men are, by my definition, self governing and therefore cannot be legitimately subjected to external governing force, which is reserved strictly for the criminal. I confess to not yet having worked out a practical approach to conflicting interests where one party claims another has violated their rights in some non-criminal way (e.g. playing music loudly at 2 AM on a Tuesday morning, or perhaps a neighbor's dog crapping on one's lawn, etc.).
It is relatively easy to come to an acceptance of this notion that third-party governance is legitimately applicable in cases of criminal acts and where non-criminal conflicts of interest arise. What appears to be more difficult for people to grasp is the seemingly obvious logical complement of this concept: free men are NEVER subject to third party governing interference precisely because they govern themselves. Criminality is, therefore and in part by definition, a failure to govern oneself properly with respect to his moral obligation to respect the rights of his fellows.
Because people at times fail to properly govern themselves, they must be governed by others. This directly implies that someone must discharge such functions - another intuitively obvious intermediate result in the chain of synthesis. It is at this point that the sticky wickets begin to make their presence felt:
- Who discharges those duties?
- How are the governors chosen?
- By what moral authority are they chosen?
- What is the standard to which they govern?
- Who governs the governors and how are they governed?
- What are the hazards faced by governors who violate the rights of free men?
- What are the hazards faced by those who make false accusations against a free man such that his free status is unjustly impinged upon?
This list is by no means complete, but it gives a reasonable taste of the nature of the questions that arise when we accept the idea that governance is, in principle, a morally legitimate function.
Conversely, we may reject the notion of governance, but it seems to me that it raises serious problems such as states of general chaos, particularly when circumstances including severe economic trouble and natural disaster arise. I am open to corrective opinions if anyone feels otherwise.
The wickets are very sticky, not because of any problems inherent to the principles in question but because of the poor choices humans all too often make. Given honest and competent discharge of duties, I see no problem with even a "state" instituted system of governance, for a proper definition of "state", all else equal.
I can equally accept, in principle, so-called "private" governance, given the right definitions and honest and adept administration. The problem, the stickiest wicket of them all, lies in the minds and hearts of men. People are not always competent and honest.
Finally, I would like to point out that there is no fundamental difference between "public" and "private" here, both of which are nothing more than slightly differing conceptual frameworks. At the bottom of all of this is the individual, either choosing or being forced to operate within such frameworks.
In my view, the goal should always be to gain voluntary acceptance of governance. Given this and the wildly multivariate nature of human populations, reason and necessity clearly dictate that the specifications of a framework for governance must be simple, small, and must strongly appeal to the most basic human senses of freedom and justice.
The real problems arise when such systems become overly complex and arbitrary such that they violate those basic sensibilities. This, in a nutshell, summarizes the perennial problem of human coexistence within the context of the empire mentality vis-a-vis that of the tribe where the individual is afforded his full respect and autonomy.
Is the empire mentality an unavoidable result of populations grown past some threshold, or is it possible to retain the respect of the individual we tend to find in smaller populations?
There are several more fundamental questions that should be addressed, but I will show mercy.

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