Owned government would tend to good government. Stable, just law is a forecondition of prosperity, and thus of the sovereign’s revenues from his personal property in the state enterprise. So the prudent sovereign would not want his government to be capricious, or vicious. He wouldn’t want to run it as a racket. He wouldn’t try to rip off his customers, but rather do his best to give them great service.
To his subjects then would it be quite apparent that the laws their governors impose and execute are reasonable and just withal, fairly and properly enforced. They would not be unhappy with their lords, or chafe at their rule. That rule would therefore be legitimate; and the sovereign would enjoy the fealty of his subjects, and indeed their love. Their untroubled cooperation with him would follow.
Owned government would tend then also to engender lawfulness among the people, to whom it would be apparent that their government generally makes pretty good sense – is honest, straightforward, intelligent, sapient, and apposite to things as they really are. Sensible laws that congrue with reality are terrifically easy to obey; one *wants* to obey them. Who that is sane wants to drive the wrong way on a one way street?
Owned government would therefore tend to preponderance of orderly, lawful, and proper behavior, thus to good social order, efficient and effective coordination toward truly valuable ends, and to social peace and harmony; to the temperance of resentment and envy, and the reduction of crime.
These all feed back, obviously, into psychological health. And preponderant good health feeds back in turn to prosperity and harmony, in a classic virtuous cycle.
Finally, owned government would tend to simplicity, parsimony, apposition, adequacy, logic, consistency and transparency of law, and to the overall coherence and sanity of the code of law, ergo to the justice and efficiency of the administration of justice. The sagacious sovereign wants his laws to be clear to his subjects, few, light, and easy for them to obey, as being fit to their lives as lives must be lived. So he would try to minimize the legal and logistical friction laws impose upon social and economic transactions, greatly smoothing and speeding both loves and works, and increasing the rate of generation of value – which is to say, of true human flourishing.