If we are on scenario 2, what do we do?
A lot of people think that the answer is "make the government as small as possible, because governments are always incompetent". There's an implicit assumption there about the free market and corporations taking some of the government's previous duties.
To me (an European) that is a bonkers way of looking at the issue. I have seen what decent government (not perfect, not even "good" government) can accomplish. But I understand how someone who has only experienced shitty governments (or has been convinced that their government has always been shitty) can think that way.
The other approach is "let's change things so that the government improves". I understand that this is a difficult, undefined, and risky endeavor. It might take generations. I understand how others can think that it is idealistic / impractical ("if that was on the table, why do we have a shitty government to begin with? people before us would have changed it for the better already. And I want improvements now, not in 20 years"). It still does sound like a better bet to me than "let corporations do what they want, the invisible hand will save us". That can turn bad in a single legislature.