I think you may be on to something, but the state is monopoly and giving a monopoly increased authority has its consequences even in cases when they are impossible to calculate exactly.

This is why such (involountary state) governments correcting what the majority deem to be a certain issue might improve things for some time (if the majority is not dead wrong that is), but is never the best long term solution --- as opposed to a volountary cooperative without any threatening monopoly powers, choosing to go a certain direction but still leaving the door open for other cooperatives and other ideas.

That cooperative could solve a problem locally, but it would also fully allow a person or group born/moved into a society either to accept these rules for their own benefit or instead to reject them and do things in a way that they consider better without intruding on the contract still in place between those choosing to remain members of the cooperative.

In the long term this utilization of market principles in the are of "government" would encourage the developement of better technologies and rules, for the benefit of individuals over time increasingly being able to obtain better and better such volountary "government" itself in a state of full Anarcho-Capitalism.