No, we don't. Federal and state government has most of the governmental power in the US. Even local government cover a lot of people and they got limited power.How would it end up in anarchy? We have decentralization with capitalism is that anarchy?
You said that it is wrong that in socialism the means of production is mostly owned by the state. But if there is a state, and means of production is controlled by the local government. Then it is controlled by the state.How would this be bad? Have the workers have a say in the workplace? How would this end up in "anarchy"?
Uhhh there would be a state.... Where did you even get the idea there would be no state?
You know that local governments are part of the state?