I guess I don't really buy the characterization of #2/#3. Where I live (Denmark) is mostly still staffed by professional bureaucrats, and they are generally quite far-sighted. So I don't get the view that they are somehow out of touch. Their job is to organize a bureaucracy to serve the public needs, which includes balancing several competing interests. The system should serve everyone equally and fairly: it should enable business; it should protect the poor; it should advance science and knowledge; and it should maintain social stability. That's not easy, but one can make a go of it.

Meanwhile, I have absolutely no confidence that the people from industry "actually know what they're doing", especially in a broad sense of knowing how to balance all those interests, rather than just maximize profits. The purpose of government is not just to make Maersk or Carlsberg richer, but to make the country as a whole prosper, which includes thinking about things like income inequality and scientific progress. Do the people in industry think about those? Usually, no. I tend to think of them (perhaps unfairly) as mostly being comprised of opportunists trying to line their pockets, while telling us all that they're acting in "our" interests (i.e. the stock-market's interests). I have much more confidence in the civil service than in the idea that we should just put all the Maersk managers in charge of the country.