I think this is an overly simplistic (and I've seen this argument on the internet a lot) argument. It's true that there are a lot of people, especially in Anglo countries, who oppose any policy that could allow the State to be enriched. But it's also true that there are many crappy state-owned enterprises. My family came from a developing country that used to have _most_ things run by the state, and there was widespread corruption in the government which kept service bad and prices high.
I do think it would be useful for economists to analyze the conditions under which state-run entities create good outcomes, but in the currently charged political climate, it probably won't happen.
Provision of services is usually corrupt and high cost in less developed countries regardless of who’s providing it: public or private sector. That is my personal experience.
I do think it would be useful for economists to analyze the conditions under which state-run entities create good outcomes, but in the currently charged political climate, it probably won't happen.