Good question. As both the public sector and the private sector have made up their own rules to suit them best and fly by the seat of their pants, mainly because of the absence of leadership from above. Lack of top-level leadership is precisely the cause of why we drown in excessive regulations to combat the undesirable outcome of freedom run amok. A stupid political system does not help untangle such a mess.
Indeed, the root of all evil is our definition of freedom and our current Neanderthal implementation of it. We deploy a “big stick” monism of freedom where the world requires and deserves a plurality of freedom, to each his own. Real freedom is not a theory of absolutism blinded by a rat-race for money-making us the wealthiest nation, but a relativity theory in which the contribution of people from anywhere, strengthening the evolution of humanity carries renewable value.
To achieve such a relativity theory of freedom, we must first establish the paradoxical rules of freedom. Preeminent regulations to determine the protection and support of collective liberty, and then pair collective freedom with the pursuit of individual freedom. I will layout exactly how in my upcoming book.
In the meantime, let me use an easy to understand sports analogy.
Before we decide to play soccer, we expect the players (as well as the audience) to understand and adhere to the rules of soccer. Think of those as the paradoxical rules of freedom in soccer, protecting the collective interest in the sport. Once those rules have been made clear in advance, a referee will then enforce those rules as the game takes place. Each player in the game then has the opportunity to exercise their pursuit of individual freedom within the now enforced regulations of soccer, and to let the merit of their own and collective contribution to the game shine.
Back to your question. The role of the public sector is to establish the paradox of freedom beforehand (we failed) and, along with the transparency of rules clear to the audience and players equally (we failed), to enforce it (we failed). The role of the private sector is to deploy and maximize their merit within.
Now imagine many proverbial sports, as merely different variations on the same theme, all subscribing to a strengthening of the renewable evolution of humanity established by the government and enforced by the public sector, with private sector ingenuity continually contributing to and pushing the boundaries of how to preserve our dynamic equilibrium with nature.