It's more like the state that's this creature that engulfs everything.
Nation states have been extremely successful. Nearly every square metre of landmass on earth is claimed by one nation state or another.
Capitalism stays out of stuff just fine. Few people organise their family or friendships or their bowling club along capitalist lines.
Even companies themselves are usually structured as quasi-socialist command economies, and the market mostly only is for interaction between companies.
> Nation states have been extremely successful. Nearly every square metre of landmass on earth is claimed by one nation state or another.
Isn't that just because its an abstraction we view the world through? As an abstraction it often doesn't fully work. E.g. is taiwan a nation state? Are the parts of lebanon that have effectively been taken over by hezbolla really part of the state of lebanon if the state isn't fully in control anymore? Is belarus really an independent state or does russia have so much control that it isn't really anymore? The state abstraction makes for neat boxes but the reality on the ground in many places isn't really that clear cut.
You are right about grey areas. However, eg Taiwan and Belarus are still organised and run like nation states, even if their diplomatic status might be a bit wonky. Eg they have an army, they enforce laws, people pay taxes and obey regulations etc.
Compare that with the state of eg Europe a thousand years ago, when things were organised differently. Or have a look at most of the rest of the world back then.
Historically, one big change was the spread of gun powder. Fielding armies powered by gun powder required a lot more state capacity and organisation but provided huge military advantages. A tribal or feudal society couldn't cut it on the battlefield anymore, so they were outcompeted. (The whole process is a lot messier and complicated, of course.)
Nation states have been extremely successful. Nearly every square metre of landmass on earth is claimed by one nation state or another.
Capitalism stays out of stuff just fine. Few people organise their family or friendships or their bowling club along capitalist lines.
Even companies themselves are usually structured as quasi-socialist command economies, and the market mostly only is for interaction between companies.