The government has an interest in long-term worker productivity, to increase its tax base. So what possible economic incentive would a government have not to return an injured worker to full productivity? Not taking investments like these is actuarially throwing money away.

Capitalism is just worse at providing universal services. Private mail can’t compete. Water is provided by private industry at rates thousands of times more. Could you imagine the harm caused by fire fighting becoming a protection racket?

Infectious disease is like fire: not a moral choice, it just spreads from person to person. I would be happy with my taxes doubling in exchange for getting sick less often, because I could surely make it up at work.