| | Your central point that democracy functions reasonably well within a context of voluntarism is a good one. Democracy is one acceptable means of appointing public officials, provided always that client-citizens retain the right to withdraw from association with the government.
However, if exit rights were recognized and respected, I wonder if other methods of governance would evolve that could be more functional than democracy. For under democracy, every citizen-client has the opportunity to vote on matters about which he might know little, and care less. As long as the fire department to which he pays contractual annual insurance fees does its job well, does the average hard-working Joe really care whom the department hires as fire chief? If the Pinkerton Association that Joe's insurance company denotes as security provider keeps his neighborhood safe and quiet, does Joe want to get involved in Pinkerton's office politics?
But this is beside the point you made, which is important: the decisions reached by majorities are often dangerous and unjust in a coercive social context.
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