This lack of understanding, and dedication to a narrative that suggests government can crowd out the private sector, whose activities must always be considered of greater virtue than those of government,
The contention is that sometimes the private sector stuff will have greater virtue. As will also be true, that sometimes government will.
The trick is in telling which is which.
As to whether government can crowd out. So, the NHS decidedly limits the private sector influence and activity in health care. The point of having the NHS being to limit the private sector activity in health care. So, you know, it’s pretty obvious that crowding out can happen, no?