> You are arguing for a less effective state though.
Less effective at messing things up, yes. You left out an alternative: corporations don't get government favors so they actually have to satisfy customers to stay in business.
When have consumers ever cared about the externalities of the products they consume? You think that if a company starts polluting a river somewhere that will make a material difference to their business if the government couldn’t step in to stop them? Honestly I’m pretty sure that’d be good for sales sinxe they can offer the product at a lower price since they don’t need to clean up after themselves.
The government needs to be able to solve market failures in a timely manner.
Less effective at messing things up, yes. You left out an alternative: corporations don't get government favors so they actually have to satisfy customers to stay in business.