Foseti asked a question a few days ago...I responded in the comments, and he admitted to placing "Aretae-bait". Nonetheless, his question and my answer lead me largely to accept 1/2 of a formalist position:
Here's the line:
A state attempting to actively maximize the welfare of its citizenry is fundamentally incoherent. Can't be done. Full stop.
This leads to 2 or 3 potential systems that are not incoherent:
Anarchy -- not a state, no problem
Monarchy -- Maximize the welfare of the monarch (at the expense of everyone else). Coherent and evil.
Coasian -- State is responsible for some portion of property rights and minimizing transaction costs...