Where does this naysaying come from? For years the US was much closer to this ideal if not perfect. For years the Fedguv operated on nothing BUT tariffs.
Why did you post my quote out of context by leaving the first part of it out? It's worth noting that during the period in which the Federal government was able to operate on nothing but tariffs, the U.S. did not have the highest standard of living in the world.
And if you want to start going back to the mid-19th century to try to make your point, remember that the pre-Civil War period in this country was actually a massive "inefficiency in the market" for the entire country that was really almost an accident of history. At that time, the nation was effectively able to secure major assets for its use and development (the Great Plains, Rocky Mountain and Sierra Nevada regions, and West Coast) without really paying much of a price for them.