>It feels like a colliding of worlds and a cannibalization that doesn't make sense to me. Like - if the government launched a messaging app competitive with WhatsApp and it drew users away from WhatsApp and it had better encryption ... Would that actually be better for the economy of this country? Something seems off about it to me.

The economy works best when anyone does what is supposed to: the Government sticks to maintaining order, defending the country, public healthcare, public education. The companies are producing goods and services.

Governments trying to undercut businesses isn't doing any good to the economy. There will be less money, less jobs.