Breaking free from reality

Our left-wing touchstone unwittingly brings up an interesting question yet fails again to find a proper answer:

It is in the private sector that we need cuts – or more tax if they refuse to do it. The reason is straightforward: much (and I know, not all) of what the the private sector does is froth on the top of the cappuccino, nice but wholly unnecessary. It’s the state sector that provides what we need most: health, education, housing (oh yes – all of it is regulated), safe food (oh yes – again, we only have that because it is regulated), transport infrastructure, safety, protection and so much more. They are, if you like the coffee in life. The froth is the extra. And we can do without some froth – we can’t do without the coffee.

The relationship is of course inter-related with both relying on each other. It is the extent of reliance which is the debate (if anything the proper starting point is precisely opposite of the hyper-regulating tax-gobbling mindset displayed above). A simple question to start from, where does the public sector get their funding?

Update: Gosh, that is not what we really meant.....
Update II: Gosh, well we sort of really meant it.....