I certainly do not regard it as the state's obligation to maximize utility. I certainly don't regard it as my obligation either. There are a lot of ends to which one might devote their energies. Why in the world should I be beholden to the herd in the sense of being obligated to maximize utility? Why should the state? And how is the state in any position to not only tell me to what ends I need to devote myself, but to use threat of force to make me pursue those ends? You and I must be living on two completely different moral planets, because I find your ideology degrading.
Maybe maximization of utility is what some people's efforts are for. Maybe certain people have had these sorts of ideas pounded into their heads so much that they simply can't conceive of what else our institutions could be for. For the moment I do not really know what else to say about this.
I'm going to hand-pick this part of your responses for rebuttal for now, as I really don't have much time these days to devote too much attention to this debate.
I can't help but notice that you do not give any reason for why government should exist. I know you may have acknowledged this, but for something that's so central to this debate (i.e. how can we decide what a government's policies should be if we don't know why the government exists), I think this is something we're going to have to reach a conclusion on.
It seems fundamentally intuitive to me that a government's duty is to serve the common interests of its people. If the government is only there to serve the interests of
some of its subjects, then there's no reason for the rest of its subjects to obey that government.
That said, one thing that virtually everyone is interested in is having an opportunity to succeed if they make a reasonable effort to. If you had the ability to choose the country you're born in, why would you pick one where you could be born into a poor family and live a miserable life while having almost no opportunity for social advancement? Even if the odds were slightly in favor of you not being born into that situation, the disadvantage of being born poor would far outweigh the benefit of being born well-off and having maybe 5% more money because there were no public services.*
That kind of situation seems like a no-brainer to me, and I daresay that given how ubiquitous public services are in developed countries, anyone who would favor a country without public services in the situation I described above is surely in a minority.
So if I may assume that most people would prefer living in a world with public services if they had the choice (which appears to be a safe assumption), then that's a pretty strong case for public services being a
common interest for most people, and therefore the government is justified in providing public services.
As I've said, I fully understand the need to reward people of extraordinary talent, but you can certainly accomplish that without having a system that is hostile toward the disadvantaged. If anything, public services most likely result in more overall achievements for a society because it almost certainly does more to enable talented people from poor families than it does to hinder talented people from well-off families.
* Note: I use "public services" throughout the post in a sense that includes things like education and health care.