All this talk about "the economy" as if there's a war between capitalist free market and governmental programs, or as if any policy could be one size fits all. People get so caught up in ideologies and competition, putting down viciously any idea defensively seen as contrary to our preset mindset. Well, obviously, not everyone, but enough to be an enormous unnecessary obstacle to real world optimization. What makes more sense to me is a kind of two-tier economy. You've got your basic tier in which everyone gets a piece of the pie covering whatever is deemed to be the basics. This sphere can also include basic infrastructure like public health facilities, public transportation including national roads, highways, turnpikes and such, public safety organizations like emergency and law enforcement, or more rationally peace enforcement. Then there's public education, libraries, art and culture centers and events.
The second tier would be the free market capitalists to provide the goods and services they do best, consumer goods, luxuries, lifestyle and status markers, specialty niche fillers, fads and fancies and fantasies and innovations. People will want to go beyond the basic and fulfill dreams or create profits because there is more to human satisfaction than basic comforts. We like to shine, be respected, show our stuff. We like to earn credits to win prizes. We like to build our personal empires or be part of exciting or valued projects. We like to work when that work is appreciated and not oppressive. We are not in a position, even in impoverished areas, where we need to live by the creed: If you don't work, you don't eat. We have plenty of potential labor to provide far more than enough for everybody without demanding full participation.