Are you determined to bore the readership into submission with arcane economics? Respectfully (that was hard!) you perhaps confuse Keynes enthusiasm for Government intervention to set balls in motion
with public ownership.
The Classical economist would say say the Government should do what only a Government can (Courts, Defence, roads and infrastructure) and leave the rest to private capital. The dividing line is often about ‘what is infrastructure’? The pipe or the contents?
My take is that the privatisation was a ‘good thing’ (NHS specs or Specsavers = no contest) but that the privatisation was ballsed up with horizontal segmentation that doesn’t actually serve anyone apart from a few fat cats. It was politicians wot did it and from both sides of the aisle with different utilities. The problem persists between rail operators and nationalised track ownership….. which seems to cause most of the problems.
The electricity supply business is a prime example of the problem. The price of distribution is pretty uniform but the big variable is the cost of generation. We should have had separated those two halves for real competition……think broadband pretty much all using BT infrastructure but competing on price as ISPs. It hasn’t stopped innovation over mobile networks either….
Anyway, if the ownership construct is wrong it doesn’t excuse either politicians or polluters for sewage in our rivers etc. There is high level incompetence and worse on all sides and inadequate holding to account.
The great Keynesian boosts in public works post WWII and since are beloved of politicians because they get to be generous with our money and then take credit. It’s Gordon Brown at his worst with your cheque book. There is plenty of Classical economic opinion that Keynes appears to get the ball rolling but that is is generally squandered and never sustained because the Government runs out of our money. Conversely, private investors have skin in the game and may be slower out of the blocks but produce better outcomes at less cost.
Still awake? It’s all opinion. Keynes famously said he changed his if the facts changed. Reagomics and Thatcherism would have probably persuaded him but we slide back to Keynesian policies because the are a political fig leaf….. not because they necessarily produce better outcomes. Their hands in your pocket…..