No, no...you misunderstand me. I'm not saying there should be less government control, just that it's done algorithmically.
Think automated DMV processing, automated welfare distribution, automated parolee management, IRS collections/auditing, and so forth.
Of course, the inevitable argument against this is that too much trust is placed into the programmers hands. This is why it would all have to not just be open source, but clearly laid out and audited by many many programmers and non-programmers alike. Further, the algorithms should have built in mechanisms for refinement and improvement.