Earlier quoted context omitted.
Sure, funding free software democratically as a public good is rational. There's no law of physics which makes you choose between directly compensating people, and their work being open. Books, music and movies could then also be open. I recall this has been advocated by Lessig and Stallman. Go far enough in this direction, you end up with ideas like Participatory Economics. ( http://en.wikipedia.org/wiki/Participato…
where and when do collective purchases go to anything besides enriching the wealthy or politically connected? "[The socialists declare] that the State owes subsistence, well-being, and education to all its citizens; that it should be generous, charitable, involved in everything, devoted to everybody; ...that it should intervene directly to relieve all suffering, satisfy and anticipate all wants, furnish capital to al…
What did this 19th century fellow know of efficient public healthcare, roads, the publicly funded research which led to things like computers and the internet? What about cooperatives, a natural way to purchase things which none of the participants could afford individually?
Part of the right wing likes to frame itself as anti-statist. (And are trotted out when anyone proposes funding anything decent, rather than ways to kill and control.) But of course, the "socialists" are the most serious about transcending these violent nation-states. Take the Occupy movements, influenced by "anarchists" (and think what you will about them, but these socialists aren't exactly the biggest supporters of nation-states).
As mentioned, it's hard for people in non-democratic societies to imagine how to rationally team together to allocate funds. In such hierarchical societies, wealthy/powerful elites make such decisions; the rest are supposed to obey their bosses every working day, in their corporate communes. Like indoctrinated cult members, we often have a difficult time imagining how to rationally function and accomplish simple goals as a horizontal team.