The ideal political-economic system is laissez-faire capitalism. It is a system where men deal with one another, not as victims and executioners, nor as masters and slaves, but as traders, by free, voluntary exchange to mutual benefit. It is a system where no man may obtain any values from others by resorting to physical force, and no man may initiate the use of physical force against others. The government acts only as a policeman that protects man’s rights; it uses physical force only in retaliation and only against those who initiate its use, such as criminals or foreign invaders. In a system of full capitalism, there should be (but, historically, has not yet been) a complete separation of state and economics, in the same way and for the same reasons as the separation of state and church.
My addition to the above would be that It's bad enough that capitalism must attempt to survive within an impossible environment of predominantly subjective law, but on top of that fiat currency forces capitalism to attempt to exist as free, while at the same time being forced to function within a fusion of state and economics. Fiat currency is the means by which government forces capitalism and statism to fuse into a mixed and corrupt economic system, and it defiles the capitalists ability to function as a trader by free and voluntary exchange to mutual benefit. Fiat currency provides the ideal environment (breeding ground) whereby capitalism must continually (slowly at first, then rapidly) devolve into a more and more statist/fascist economic system replete with victims and executioners, masters and slaves. Capitalism and statism can not live in harmony. In any mixed system of good and evil, only evil can benefit. And as evil thereby parasitically grows and flourishes, good is eventually pushed completely out of the picture. Yet statism forces capitalism to take the all of the blame for any such devolution and/or corruption caused by its being forced to attempt to exist under statism. There is not a capitalist alive or dead who would accept a fiat currency in trade for goods or services without the force of a government gun compelling the use of such currency.