Buck,
If you don't like my library example, there are plenty of other things that cities do that compete with private enterprise. Some people want to get tax credits to pay for their kids' private school education rather than sending them to the "free" public schools their taxes pay for. If they got that ability, I'd argue that I should have that portion of my taxes refunded since I have no children!
On the other hand, I would be so damn happy if my local government was one of those who had done their own community cable system because our city council totally screwed us 25 years ago when they brought cable in by granting a monopoly, so we pay 2x as much as a city 30 miles away who just coincidentally has two competing franchises the residents can choose from, and another 45 miles away that has a monopoly granted to the community owned cable system. You could certainly argue that a city has no business running a cable system, and maybe you are right, but personally I don't think 25 years of everyone in town paying 2x as much as they otherwise would have is worth it for a city to avoid running the risk of being labelled socialist. And hey, irony of ironies, in the late 90s we were one of only a few cities in the US with a mayor from the Socialist party and we still extended that damn cable monopoly!
Sometimes (well OK, often) taxes pay for stuff you don't need, or don't want. If I'm paying for something that I don't want, I lose money as surely as if I was losing money competing with the government in business. But you don't get to pick and choose, otherwise I want to opt out of paying for that moronic and pointless Iraq war, the next guy will want to opt out of the EPA, someone else will want to eliminate NASA and rely on Richard Branson's effort to bring us into space, and so on.
The government competing with privately owned golf courses is the tip of the iceberg. The same city which I talked about the golf course here is getting $50 million in federal money to build an indoor rain forest. Yes, in Iowa. Why? Well, because we have two powerful senators who can make it happen, and every other senator is getting their state lots of pork, so we feed at the trough like the rest of them. But woe to those business owners who reside where they decided they wanted to put it. They rezoned everything and are essentially using a combination of that and eminent domain to take over. The land owners are getting a pretty fair deal from what I understand, but too bad for those who were just leasing. You ask people what they think of extreme government powers like eminent domain and they hate it when the government takes land for its own use. But they seem to have no problem profiting from it for those cases when the government takes land to sell back to developers for stuff like malls. They'll use catch-phrases like "increasing the tax base" and "revitalizing the infrastructure".
So if any of you Americans are wondering why we have a half trillion deficit each year now, 1/100000th of a percent of that will be just a few miles where I'm sitting. Hey, might be nice to visit on a cold grey day in winter, get some artificial sunlight and walk around in 85 degree and humid conditions so I can remember what summer is like! As wasteful as that is compared to what I could think do with $50 million in free money to spend on the good of the community, I suppose it can't be any worse than the pork barrel projects going on nearby other GCAers. For me, the worst thing was just realizing when I typed this that $50 million, more than I can imagine ever possibly having in my life, is only one one hundred thousandth of a percent of our federal deficit for this year!!