You stated that "The sole benefit you describe, namely the ability to borrow books, is a private benefit. I borrow a book, read it and enjoy it. What benefit does this create for anyone besides me?"
Do we have different definitions of "sole" and "private" - those words feel fairly absolute to me.
Sure it may not be a massive positive and direct benefit to you, but I find it hard to understand how you think there's no possible benefit at all. Do you feel the same way about teaching people to read, write and count?