[rlanday]

Your argument is clearly flawed because it goes way too far. It applies to literally any sort of economic activity it's possible to be engaged in. For example, I could make all your arguments as reasons why the California state government should take over pornography production from private producers. We know from experience that private industry is more successful than the government at many things…including building housing:

https://en.wikipedia.org/wiki/Public_housing_in_the_United_S...

[kavabean]

Top down state organisation is prone to corruption. It takes effort to keep that at bay. The public oversight required is an overhead that should only be used in select tasks.

The state is not suited for all tasks, especially those with rapid iteration, experimentation, low capital costs, and low cost of failure. Housing technology moves slower and is dominated by capital and bureaucratic concerns. It is also one of the dominating costs in modern life. The state is capable of doing this task and the public oversight burden is warranted.

For products and services that do not absolutely require the state, I believe worker cooperatives, incentivised by the state are a much better solution