It's interesting that you give Switzerland as an example since many would regard it as the most libertarian country today. Could you imagine this [2] happening in the US?

Public spending to GDP ratio [1]:

  Sweden      51
  US          42
  Canada      42
  Switzerland 34

When the Swedish welfare state has collapsed (I'm Swedish, and it's not looking good) you are welcome back to the small government camp :).

No 1 is a good argument against libertarianism. A counter-argument is that more libertarian-style decentralized decision-making would mitigate negative externalities and the "common good tragedy". Research suggests [3] that negative externalities can be managed in smaller communities; smaller government also makes it harder for parasitic organisations to suck out money. Pollution can also be taken care of in the court system rather than regulation.

Before advancing an "how would X work?" argument, you should consider whether X really works better in other systems. Last time I checked, there was a ton of flooded houses in Houston, plenty of people smoke, and there is quite a bit of organized crime (a popular one in Sweden is "assistance compensation" paid out by the government to people who take care of sick relatives at home. Who would ever think about abusing it?? Surely not the mafia and IS). No-one is claiming that liberty will produce a perfect world, but that it's the morally right thing. As a bonus it would also likely produce better outcomes (on average) than what we have today.

[1]: https://en.wikipedia.org/wiki/Government_spending#As_a_perce...

[2]: https://www.theguardian.com/world/2017/jul/18/switzerland-pu...

[3]: https://en.wikipedia.org/wiki/Elinor_Ostrom