One thing that I have noticed is that there are those on the left that seem to distinguish between both. I personally do not know the difference, except among minute details . For example, a Municipality can have a government, but not be a state.
http://mises.org/Community/forums/t/4942.aspx
The fallacies of intellectual communism, a compilation - On the nature of power
The only aspect of government/state which is relevant from an economic point of view, is that of COERCION. Who uses force and exactly how that force is organized and under what propaganda name it goes, is rather irrelevant.
If I may hijack the topic a little bit, I'd be interested to know if it is possible to make any significant difference between governmental/state coercion and criminal coercion? I mean, aside from decision rituals (such as mayority vote) which the government/state and the criminal themselves have made up.
It's not fascism when the government does it.
“We must spend now as an investment for the future.” - President Obama
The state is the apparatus of legitimate, that is legitimate in the eyes of society at-large, coercion by which the policies enacted by the government are enforced.
Abstract liberty, like other mere abstractions, is not to be found.
- Edmund Burke
from wikipedia: __A government (from the Greek Κυβερνήτης kubernites - steersman, governor, pilot, or rudder) is an organization that has the power to make and enforce laws for a certain territory. There are several definitions on what exactly constitutes a government. In its broadest sense, "govern" means the power to administrate, whether over an area of land, a set group of people, or an association. __A state is an organized political community occupying a definite territory, having an organized government, and possessing internal and external sovereignty. Recognition of the state's claim to independence by other states, enabling it to enter into international agreements, is often important to the establishment of its statehood, although some theories do not make this a requirement - for instance, the Montevideo Convention. ...
A movie about the crowning-campaign on May 1st in Lörrach concerning the topic 'basic income'.
http://www.youtube.com/watch?v=Y_oh6uyKC2M
February 17 - 1600 - Giordano Bruno is burnt alive by the catholic church. Aquinas : "much more reason is there for heretics, as soon as they are convicted of heresy, to be not only excommunicated but even put to death."
This going back to a discussion on civil society being a spontaneous order that includes, thus is also a spontaneous order called free market. The State is coercive and so is the government. If the State wants to join the free market it isn't the State anymore and is included in the civil society.
Of course my opinion in choosing this distinct concept called civil society so I need not reinvent the wheel. This also avoids defining the State as a coercive and non-coercive entity, thus, including a contradiction in a definition of a concept.