There are a number of issues mixed together here so it is easy to attack. However, the main argument: direct cash with increased privatization vs public services is valid and should not be rejected out of hand. This approach could work better - at least it is not guaranteed to be worse.
You aren't...attacking anything. :) That's my view too! Allow households and taxpayers and consumers to make their best choices on which services they like, even if it's private. Let the best teams win!
