The more people that move from these social constucts to truly capitalist endeavors, like your example of the school teacher, and create viable alternatives to socialist, publicly funded programs will create a domino effect. Especially if they do it right, through the grey market and people start to see the benefits of this type of entrepreneurial activity. But I think there would be large groups that cling to the concept of socialism.
The question is, which of these social constucts will the status quo (the first realm) cling to? Most of these would be safe to assume like schools, hospitals, banks, etc. And taxes (because muh roads!) As you said people are quick to label socialism capitalism. This boils down to people not wanting individual liberty because it requires individual responsibility. Many of these socialist constructs eliminate most if not all individual responsibility, leaving the servile society to mindlessly consume frivolous crap and technology that makes a sedentary, unproductive life increasingly more comfortable.
I remain pessimistic that people will abandon socialism even after the Agora has reached critical mass. The welfare ideology has been shoved so deep into the subconscious of most people that they dont even think about it. Its like the programs in the Matrix being so helplessly dependant on the system they will fight to defend it. Or the allegory of the cave when they kill the guy for telling them there is sunlight.
Maybe I'm too much of a pessimist but as extensive as that list is and as indoctrinated as people are, I don't see the willingness to even think about defunding the statists beloved socialist constructs.
Excellent comment.
The way I am seeing it unfold is the first realm population will move to where the most social constructs are (high population states and cities).
As the social constructs pile up there tends to be multiple taxes layer up. Federal, then state, then county, then city. Four layers of taxes eventually. Proliferation of fees also occurs.
A vast majority fall into poverty, remaining poor, or having to leave. The tax base gets eroded. The local governments cut spending on infrastructure. Debt spirals out of control. Same ole stuff been seeing playout.
I call it first realm hellhole creation.