The state will never, ever be reformed through the political process. The only way to crush the state is to bankrupt it. Therefore, the more people receiving payments and the fewer paying taxes the better! You should take the unemployment payments and also have some black-market income on the side.
I agree on the premise that we can't expect anything from the political process.
But in your conclusion is complicated. If people just start running away from the state, that'll make it more intrusive and aggressive. Living in the "black market" is always difficult. By black market I mean anything not official, like undeclared labor, ambulant sellers who don't pay taxes etc.
Don't fool yourself to think that a black market is just like a free market. It is not. The simple fact that people have to hide from the state limit them a lot, there are lots of things capitalism can provide that they cannot use because of their hidden condition. Trust becomes much more complicated as you have no means of pursuing some one, at least not in a "civilized" manner. When you can't trust anyone like this, your circle of relations gets much smaller, what limits the benefits of capitalism.
If you ever had the chance of reading the book The Mistery of Capital, you get an idea of what I'm talking. Or, if you grew up in a third world country like me, you probably already know it.
My country has something like 40% of the economy in the "dark side", and that doesn't seem to help people, on the contrary... those working on the black market are mostly the poorest.
I hope the internet (and bitcoins
) provide the means to people to escape government and also avoid all the problems unofficial markets have today... let's see.
(also, I hope the seasteading project becomes a reality soon