Check out Market and power by Murray Rothbard. It is hard to imagine a totally private state, But exactly things like Social Security create a dependence on the state that creates a poverty class.

In my own mind there are people who can not compete well enough in the economy to prosper, But the government solutions for these people are inadequate. The human rights movement in Europe did much more to provide for these kind of individuals, But ultimately in Keynesian economics especially these people get left behind. I think Carl Sagan was the only handicapped successful person I can think of.