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Lol, this makes zero sense.So society had a need for proper waste management and communicated that need via govt. The private sector responded and now we have a private market to address that need. Whether the clients are the people directly or the govt, it's still a private market addressing the needs of society.
In other words, the govt became a customer that demanded waste management and the free-market produced suppliers of that waste management. So it's the capitalistic concept of supply/demand in action.
Did you take Econ classes from PragerU of something? Time to request a refund from whoever made you this way.