With government funded, and required schooling not only do we have a more intelligent nations, but also one with further developed social skills. The "homeschool effect" would be a nation wide occurrence, people would loose the sense of empathy toward others feelings, and would not react well to difficult social interactions. Also having required schooling is important to insure a developed people. If education was not required, and funded, knowledge that is currently easy access, and, might I add, important, will not be common domain. School forces a social mindset, it develops well rounded character, an understanding of people, and how to problem solve, deal with disputes, and understand others in a more intellectually less physically driven way.

Having a government is necessary. The government is responsible for not only the big things, like international affairs, law making, collecting taxes, etc, but also regulating food and water, the economy, creating jobs, and allowing for easy everyday functions. With no government comes a deteriorating food supply, with irrigation, and balanced plowing and harvests, agricultural growth is not only difficult to do intelligently, but expensive, the government insures a baseline that is built upon by farmers to insure safety for consumers, the environment, and the animals. With no regulations on farming, the amount of pollution from farms could be destructive, nitrogen runoff in water sources would make water polluted, and with out government regulations on water, safe water to drink with, bathe in, or cook with would become practically nonexistent. Any manufactured good would also be tainted, seeing as the government makes sure that things are safe to use, and buying from a local source would also be tricky because you would have to judge purely based on the honor system. The economy would crash completely due to unlinked chains of distribution. The class system would become polarized, people with money will continue to have it, and to make more and more from those who have less of it, the middle class will be destroyed. The government is necessary to everyday function as people of the modern world, and with out it there would be no way to sustainably live.