Who says the state is dumb? It created the market, after all.

What does that mean? Across history, there is a whole spectrum of complexity of both markets and governmental arrangements, and against that backdrop it's not clear that it means anything to talk about "the state" or "the market", still less one creating the other. You might as well say that "the market" created "the state", and I expect that a historian could argue either thesis with equal facility.