Serious question. Is it possible to do this with very large populations? It seems like it might get inherently more complicated with several tiers of government (federal, state, county, city, etc...)
It definitely feels like Dunbar's Number is a gate to keep this from being effective in large communities.
If we can't view more than a finite amount of other humans as being "real," how do we begin to get massively large groups of humans to care for one another? This is a question I don't have the answer to.
Honestly I believe this to be a way more important issue to discuss than the whole capitalism vs socialism vs communism vs whatever else argument. If your ideas can easily be perverted by corruption then it won't work.
I have some ideas but I'm just some idiot on the internet. I think you need checks and balances. Have at least two groups with similar power at odds with one another. One example is corporation vs government. But I don't think just 2 groups is good enough. Ideally you probably want 3 groups at the very least. I know many governments around the world already uses this sort of structure internally (eg different branches of government), but I don't think these solutions take into account the existence of mega corporations that can act across country borders.