For a government to be legitimate and function correctly the ultimate authority has to be the people. Otherwise the state is simply a method for a narrow interest to concentrate power and sustain itself. The constant failure and rapid decline of the US effort shows that the effectiveness of "government by experts" while public interest is marginalized as was envisioned in the early 20th century is largely mythical. Sure, it makes record profits in the short term, look at the current numbers, but it causes too much damage to do so. What we are doing is not sustainable, even in the short term. This is the inevitable result of corporate management having a fiduciary duty to ignore external factors such as environmental or social damage in order to pursue maximum profits for shareholders. Private capital causes this state of affairs.
If we must have state capitalism lets at least make it state capitalism for the people instead of state capitalism for the 1%. We can do this by nationalizing private capital and using the proceeds to make sure every citizen has a basic living wage and adequate health care.
The main reason we have such a high deficit in the first place is because of our incompetent approach to health care. If we moved to a publicly funded system the savings would eliminate the deficit in short order.
Proof:
http://newamerica.net/sites/newamerica. ... er2012.pdf