Let me ask you a question. What keeps that neighbor from bribing the government? Laws? Sure, but look at all the cases where government officials went back on the laws they said they upheld and whatnot.

No one is saying Rose's solution is going to be all peaches and cream. There would be abuses and problems like how there are abuses and problems now. The difference is, the abusers and problem makers are no longer centralized into a group that enough people believe has the right to do anything.

Simply put, the difference between the mafia and the government is simply that no one believes that the mafia has any right to extort and kill people. But when the same actions are applied to government, suddenly, it becomes ok. Goose and gander sort of thing you know?