So USA then? 19th century USA - pretty much no government to speak of (of-course the war was started to prove otherwise), no income related taxes, no business regulation, a growing economy, the country became largest producer of manufactured goods in the world, USA became biggest exporter and thus biggest creditor nation on the planet Earth, and that is only a few decades after being a debtor nation and a mere afterthought to Europe.
Then of-course all the wealth created the welfare state, destroyed freedoms and now it is becoming a military dictatorship.
My point is that the time of no government and maximum individual freedom is the time when we build maximum prosperity. Sure, we should want to maximise prosperity, but my point is also that we should have maximum individual freedom regardless of prosperity that it brings.
Should there be a structure to occupy space of government that prevents other structures like this from forming? I am no longer convinced that it is a necessity, I think with globalization, global communications, global travel, global businesses it's becoming less of a factor and eventually we will end up (I think we will) with a system that has no central governments. Sure, there will be smaller municipal governments but the central governments will lose their role in the global society, and that's a good thing, not a bad one. But before it happens there will be a huge crash and the governments will lose their credibility.
We had various bubbles and crashes and the incoming crash will be a crash of government. We have a huge bubble inflated in people trusting governments and people relying on governments, this bubble will burst and that's great, of-course it will be a painful transition, which is often the case with transitions, but it's for the best, so good luck to you.