Creating the public/private distinction would also help solve some legitimate political issues and provide a much more consistent framework. Politics is mostly a game of compromise. You could give in on already gutted half markets, such as public health insurance, while using the leverage to push harder to keep most other industries open.
Ideology often gets in the way of providing the best solution to the greatest amount of people. I personally don't see much value in keeping a broken half-market like health insurance putting along in the name of "free markets". That just makes people blame markets for the failures of the public/private arrangements, which hurts them in other areas where it does make sense, where markets should be the default.
Others like private prisons and private military contractors makes the public lose trust in public institutions. Having a trustworthy justice and government system is critical for all markets to succeed.
Additionally a harder public/private distinction will put greater weight in these decisions and more responsibility. It's very easy for a politician to grab the half-measure public/private mix while pretending to appease both sides.
Ideology often gets in the way of providing the best solution to the greatest amount of people. I personally don't see much value in keeping a broken half-market like health insurance putting along in the name of "free markets". That just makes people blame markets for the failures of the public/private arrangements, which hurts them in other areas where it does make sense, where markets should be the default.
Others like private prisons and private military contractors makes the public lose trust in public institutions. Having a trustworthy justice and government system is critical for all markets to succeed.
Additionally a harder public/private distinction will put greater weight in these decisions and more responsibility. It's very easy for a politician to grab the half-measure public/private mix while pretending to appease both sides.