You're catastrophizing by jumping to a negative outcome, similar to a cognitive distortion. It doesn't have to become a racket; that is a leadership choice. Individual identity issuing, public key certifying authority, banking, news, healthcare, truth-worthiness and many more areas would all be served best by non-profits that are funded by a combination of grants, modest fees and/or donations. There are some human activities that are too important to be privatized, like the fire department and the NTSB... whether the government should or shouldn't be responsible for running X is a topic for another time.