De-socializing or De-statizing, i.e., reducing the size of government and its influence on an economy is tricky and complicated.

Fiat gets in the way.

The process would entail privatisation, disinvestment, stake sales of public assets and fully abolishing government monopolies. This would offset the losses to the exchequer incurred by the necessary reduction of taxation required by a program like this.

But if money and credit are monopolised, always inflationary and centrally controlled, the whole endeavour will eventually lead to a few large corpos effectively gobbling everything up, having reaped the benefits of the cantillon effect, fractional reserve banking, privileged access to the money market and politically decided rates of interest.

Savings would keep being destroyed, workers would end up becoming debt slaves, living standards for some will raise while for others it would fall, with this difference becoming always pronounced over time. Resentment would build up. Demands for safety nets would increase. Social and economic mobility would be constrained. Calls for socialization would get louder.

This would naturally cause people who observe this to conclude that the free market is evil and exploitative. Justifably so. The corpos will undeniably become the enemy rather than the state.

Bitcoin fixes this.