The Common Problem . . .
Is that people look at government as good or evil. They tend to view it as either their best friend or their worst enemy. Government is always inefficient, because government, by definition, is about control and limitation in the interest of safety. The question is, what is the appropriate balance point between safety and self-determination? Unfortunately, this is one of those questions where 3 people will give at least 4 different opinions.
Opinion is a bad basis for policy in the first place, but it often becomes law through the force of public opinion. In this case, opinion cannot even provide a generally accepted answer. Logic is the only available answer to set the appropriate balance between safety and self-determination. So, do we make government a first response, last resort, or somewhere in between?
There is a case for government being the first response. Government can bring more power to bear on any given problem than any other entity, because it can always assemble more resources. With a gross revenue measured in trillions, and future revenues guaranteed through a monopoly on premeditated force, government can buy the answer. The question is, at what cost to the rest of society? Because of its very size, national government alters the supply-demand curve by any concerted action. That alone makes a good case for delegating powers to lower tiers of government. Greater accountability of and access to government institutions makes a better case for assigning government power to the lowest level with the budget and personnel base large enough to handle the job. This is the core ideal of federalism, many smaller units of government working for the narrow interests of their specific constituencies and ceding to higher levels of government only what powers they cannot effectively use themselves.
Even better, though, is for government to be the final resort. This is not because large corporate interests are inherently more moral or responsive; in the general case that is used to set public policy, they are not any better than government. They are, however, more easily avoided than government, if they become harmful to someone. Nor are small, voluntary associations such as co-ops, collectives, or syndicates going to be an effective alternative. For government to justify its existence, it must be large enough to do what the people themselves cannot do in voluntary associations. For government to meet its primary responsibility of preventing violence to its populace, it must be powerful enough to coerce compliance from those who place little or no value on peaceful coexistence. In short, there is no more trustworthiness or value in large corporations or small associations than in government. However, there are more options available in interacting with them.
The Uncommon Solution . . .
The balance between safety and self-determination lies in a government which follows the Hippocratic Principle: First, do no harm. If a government will limit its actions to ones which meet that standard, it can be trusted with sovereign power. Even such a government, though, should be a last resort. If another private entity does harm, the government can provide effective redress. If the government does harm, there is no other recourse.