Back in the 80s it was popular to privatize all kinds of government functions, on the basis of the claim that the free market would provide better solutions. So

Back in the 80s it was popular to privatize all kinds of government functions, on the basis of the claim that the free market would provide better solutions. Somehow the scope of the transfer of money from taxpayers to private industry was not seen as distorting the market. At least, not as much a distortion as having the services be provided directly by the government.