I disagree with your claim that smart government cannot exist; on this planet, with the rulers who have reigned throughout recorded human history, I can see why you may have doubt, but surely it is possible for those of the government to govern with intelligence and wisdom. I'm not saying that it either ever has or ever shall happen, but it could be possible for a "smart government". Perhaps some sort of senectocracy?
Side: Of course
If your understanding of praxelogy was even basic, it would be easily recognizable that smart government is impossible because of one fundamental element, human action. Human action is the act of purposeful behavior, and if it is deemed undesirable by government, it is not purposeful action, government can't be all nothing and all powerful although some substitute as so.
Side: no such thing
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