I came to the same conclusion. I would rather have a social contract based on actual contracts with life insurance companies (or something similar). These companies can be backed by reinsurance companies. Instead of picking the red bankruptcy team or the blue bankruptcy team, you choose a reputable life insurance company. Maybe you like Mass Mutual. Maybe I prefer New York Life, but these companies can provide something like social security, unemployment insurance, defense, etc. If they need a bailout, they can get bailed out by reinsurance instead of fiat.