Razor's right about privatizing every last government function - it'd be confusing as hell and who wants to write that many checks every month? And who wants all the freeloaders who won't pay for police protection? How do you know if the guy getting mugged is late on his payment and you call for a cop anyway? Who gets the bill, there? At some point the government becomes the most efficient actor, even if they're still making some inefficient decisions.
Update: looked at few of the commenters on Radley's site, and sheesh, talk about hard-core libertoids. Government may be an annoyance, even at its best, but "inherrently evil" is a bit strong, don't ya' think?