alt Hacker NewsIt is a good thing and it absolutely can function, but not as a society. Ayn Rand explicitly rejected this idea [1]:
Q: Why is the lack of government in Galt’s Gulch (in Atlas Shrugged) any different from anarchy, which you object to?
A: Galt’s Gulch is not a society; it’s a private estate. It’s owned by one man who carefully selected the people admitted. Even then, they had a judge as an arbitrator, if anything came up; only nothing came up among them, because they shared the same philosophy. . . . But project a society of millions, in which there is every kind of viewpoint, every kind of brain, every kind of morality—and no government. . . . No one can guard rights, except a government under objective laws. . . . Rational men are not afraid of government. In a proper society, a rational man doesn’t have to know the government exists, because the laws are clear and he never breaks them. [FHF 72]
That's a real circular answer there, "it's not a society because it's not a society". Claiming that a place specifically set up as a self-contained community hiding from the government, and hiding from government authority, is 'just a private estate' is rhetorical nonsense.