Libertarians: Do you believe a society can function by applying free-market discipline to every institution?

Libertarianism just doesn't work in practice. Let's be straightforward, the United States is, by definition, a business-run society. The free-market and "tough love" is applied to everyone, except the bankers and CEOs of monopolistic predatory corporations. I think we can all agree on that. Nevertheless, If you look at the countries that have applied free-market discipline to every institution, you will find vast inequality of wealth and a great amount of poverty. For example: United States pre-progressive ear, Thailand, Hong Kong, and Singapore. I mean, let's be honest, the only reason why the West has prospered and survived is because of government intervention in the economy - that protects private interests. The internet, for example, was created by the public (government), but the corporations profited from it, not the public. What makes you think the United States, under laissez faire capitalism, won't become a 3rd world nation with 1/3rd of it's people being in poverty, like all the other countries that tried it?