The industry goes bankrupt because it can’t compete with a government producer that doesn’t pay taxes, leading to a government program running without competition, paid for by deficit funding.
If you’re a currency issuer then your government programs don’t run on any funding. They are allocated a maximum amount of new currency.
But modern monetary theory aside, government competitors only eliminate shitty competition, not entire industries, unless those industries are themselves useless like the insurance industry.
The industry goes bankrupt because it can’t compete with a government producer that doesn’t pay taxes, leading to a government program running without competition, paid for by deficit funding.
If you’re a currency issuer then your government programs don’t run on any funding. They are allocated a maximum amount of new currency.
But modern monetary theory aside, government competitors only eliminate shitty competition, not entire industries, unless those industries are themselves useless like the insurance industry.