To get back to the original topic. We are trying to figure out how a city's legal system would have to be set up for it to exist as a Laissez Faire Capitalist city. Since we are familiar with it, we'll assume the home country is the U.S. That means we have federal, state and county laws that may interfere with city ones. In order to consider this, we have to think of ways a government's (especially a city government's) laws will affect a city's economy: Taxes. Choosing who gets taxed and how much. Choosing who gets tax breaks. Social Security? Welfare? Healthcare/Insurance: Legally required to buy something from private company. Minimum Wage? Land grabs. Taking land for public use then paying whatever compensation is deemed fair. Nationalizing any structure or product to secure for public use. Printing money. Physically determining how much money is out there. City level solutions: Voluntary "tax" system. Everyone pays what they deem necessary. They get what they pay for. City cannot use outside tax money (from federal or state level) to build roads and such. (Is this legal?) Social security/welfare/healthcare: Does a city have any involvement in this? Insurance (auto/home): The city does not legally require it. If you wreck you/someone elses car/house, you pay for it. If you can't figure out who owes what, the city helps you solve it. Minimum wage: Enforce federal and state wage requirements. Add no extra requirements. Land grab/nationalizing: The city cannot force any citizen/corporation to sell anything. It can only offer more money/trade (not favors). Having to pay more money for land and such makes a government really consider whether or not a project is necessary. A privately owned bank, located only in that city, coins money. (Is this legal?). This money can only be used in this city. (Legal?). No city businesses accept outside money. (Probably not legal). How do you prevent this money from leaving? If the outside money must be used and the city money can't be kept in the city, then this point is irrelevent. What are some other problems such a city might run into? In other words, legally, why can't such a city exist in the U.S. today?