Watering holes are a massive positive externality. In our current system, the government and charities are the only institutions that are set up to deal with ex

Watering holes are a massive positive externality. In our current system, the government and charities are the only institutions that are set up to deal with externalities. Without them we are stuck with watering holes for which private entities are capable of extracting enough of the generated value (aka, rent). If you make rent seeking harder, you decrease the portion of the value which can be captured by the private entity, further restricting the watering holes which private entities are capable of building.