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This is the reason that I'm strongly of the persuasion that some things shouldn't be left to private organizations. Some things - like police, firefighting, infrastructure, schooling and healthcare to name the most important - are better handled by the state. Of course, private businesses should often be allowed to deliver extra services for a fee, but core requirements at a minimum level can't be trusted to for-profit organizations. IMNSHO, of course.The decisions are made to maximize profits, not patient care.
So - again IMNSHO- the ideal model is somewhere between Ayn Rand's vision and Vladimir Ilyich Ulyanov's vision. If we can agree on that, the rest is just quibbling about details.
EDIT: What I find rather fascinating about the "Scandinavian model" for socialism/social democracy is its pragmatism. If you look at the political development in Scandinavia the last 100 or so years, its most striking feature is the absence of hard-core ideology and the strong reliance on actual, measurable facts. And a willingness to adjust the course according to how the waters actually look, regardless of what either Dr. Marx or Dr. Friedman had written in their charts.