Right, so you are using equivocation -- using the same term with two different meanings -- when you use "effectively aggregate our desires". In one use, it means "internalize externalities". In other, it means, well, its not really clear what it means specifically in terms of forming a government -- but its clear it doesn't mean internalize externalities since that's what the government is intended to do, not what is done to form it -- but you use the same term to misleading pretend its the same problem.