This is loony Ron Paul style libertarianism Balen....it's impossible to impliment, impossible to manage and never really intended to be presented as a realistic solution as much as its used as a platform to rant about the current system and spout bizarre ideologies.
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It's actually easy to implement, because we do it in so many other areas of our life. It's as simple as purchasing any other service that is competing for your dollars.
Bottom line.
It's loony to think that government can solve complex social problems, especially when the evidence is so overwhelming showing that it can't.