I understand where you're coming from. However, I don't think it's a matter of how the government is currently run. No matter what, governments run on violence or the threat of violence. Even if they're properly representing "the people."
There's no such thing as "the people" as a whole, so some people will get what they want and other people won't. Those who don't get what they want will have to follow the rules laid down by the majority, or else.
That's why I believe in Voluntaryism. All human interaction should be voluntary. But force could still be used in self defense, and that includes defense against "people creating their own states in [your] state via their monetary power and the existential threat to employees"
I know we're coming at these issues from totally different foundations so it might be difficult to take this conversation much further. If you're interested in learning more about Voluntaryist/anarchist philosophy, I would recommend Larken Rose's book The Most Dangerous Superstition.