Fifteen years ago, he wrote,
Government service providers have monopolies over wide areas. Most people live in buildings and own lots of physical property. They are likely to have family and friends in the surrounding geographical area, and to work at a nearby job. While there may be people who live in RV’s, only have friends on the internet, and telecommute every day, they are surely rare. Thus if an individual wishes to switch providers, they must physically relocate to a new country. This involves an onerous series of steps: sell their house, pack up all their possessions, quit their job, move to a new country, deal with immigration requirements, buy a new house, get a new job, make new friends, learn a new culture. This is an extremely costly process.
In other words, government is like Facebook. You can complain about it, but there is not much you can do about it, because you are stuck there.
He comes up with proposals for a system for competitive government, which he calls dynamic geography. If we already were living under his system, then it would work. But the problem is to get from where we are today to something new, given the switching-cost problem. The same switching costs that make government lazy and unresponsive to constituents make it very hard to get a new system going.
My approach to more competitive government would be to institute a right to secession or recombination, subject to a sort of common-law court. That is not a perfectly workable solution, but the idea would be to allow people who are otherwise happy with their location take advantage of competition in government services.