The answer, I think, is that we have constructed a massive, complex economic system that simply relies on these unseen institutions (governments and others) to mask the fact that our high standard of living is largely an illusion. And what I mean by that is that in recent decades we have come to rely increasingly on GDP growth that isn't "real" at all. Instead, it is based on growth of business activity that has replaced personal "non-financial" activity (like schools and day care centers replacing parents for raising children) or entire industries built on the idea of third-party payment as the norm (health care and education, for example).
There is truth in what you say.
LLS