But if you want to be pedantic it’s both nationalized and private. It depends on whether you’re referring to the military or industry.

When you create these hybrids of business and government, corruption is inevitable.

That wouldn't be possible if those entities were simply nationalized. But since the gov is a customer, and them a producer, and the gov NEEDS the thing, and only the private sector can give the thing, it's a money bath.

Of course it's really full circle, because while the industry is private it's actually funded entirely by taxpayers. Because the customer is the government. So the corps have a strong incentive to be as inefficient and greedy as possible, and you actually pay for that.

I don't have a pat solution to this, but for example, Boeing, Lockheed Martin, Northrop Grumman, and Raytheon have little reason to improve when they have a captive customer. Raytheon recently agreed to pay ~$1B in penalties for illegal exploitation of their position and the market doesn't care: https://www.justice.gov/opa/pr/raytheon-company-pay-over-950...

Pure capitalism for these kinds of uniquely critical products and services doesn't seem like the right answer.

Extremes rarely work; rational compromise is what moves the needle forward, bit by bit.