There are many functions which are necessary to civilization.  The state does provide many important functions.  This, however, doesn’t imply that the state can only supply those necessary goods and services.  The state has a monopoly on every sector they’re in.  A “coercive monopolist will tend to perform his service badly and inefficiently.”  Some areas like education and money are far too important to be left to a monopolist.

Those listed above are by no means the only areas which they monopolize.  A monopoly over money makes the monopolization process easier.  Many would disappear, or be minimized, without that.  A monopoly on money provides them with a quick and easy source of revenue.  Many areas could be called quasi-monopolies, but not this one.  The state makes sure there are no other counterfeiters.

Just as David Friedman pointed out, “Producing laws is not an easier problem that producing cars or food, so if the government’s incompetent to do a good job of producing cars and food, why do you expect it to do a good job producing a legal system within which you are then going to produce the cars?”  A legal system is far too important to be left to a coercive monopolist. Parasite , There is no doubt that laws will be made in favor of it.

Education is a very important area for the state.  A poorly educated public will keep them submissive.   The people are taught to repeat certain things, but not taught how to think.  You’re taught that the state is number one.  This allows them to keep a tight control on religion.  Keeping that under control reinforces that the state is higher than all else.  It’s mutually supportive.  They can kill two birds with one stone.

The state monopolizes many areas.  To reinforce the monopolies they do have, they monopolize the legal system.  This ensures the laws they have written are in their favor.  Yes, sometimes the laws go against them, but it’s not often.  This is merely a smokescreen to make you think the laws are impartial.  Then, when laws are ruled in their favor, they use their monopoly over the police to enforce these laws.

Reference

Murray Rothbard; The Ethics of Liberty