The supposition that coercion is an essential dynamic to the workings of human society is based on the cultural assumption that each individual is a lone competitor that will have to be coerced into acting for the greater good.
However the truth is human beings are naturally cooperative, social animals.
Human behavior is largely due to socialization, so if dysfunction is common in a society it is because the individuals are not socialized properly.
You can't punish the lack of social skills or opportunity out of a person, you have to show them what to do. This is why sociological studies of societies that feature little of no coercive element show that mental illness is extremely rare in those cultures and social coercion is shown to be the causative factor. The overwhelming cognitive dissonance that is an effect of our social structure isn't present in theirs.