It’s insane. You are “emperors new clothes”-ing their actions.

There is no logic to it, it’s make believe for the narrative machine.

The truth likely lies in the middle. Some are truely just insane, some are trying to shoehorn or steer special interests through the insanity, etc.

I don't think that's the case. Rather, GP argues that the policy is rationally corrupt. I tend to agree. Many people in the political center would rather believe that terrible policies are the product of stupidity than malice. I too am a fan of Hanlon's razor, but if stupidity were controlling you would expect occasional stupidly good outcomes as well as stupidly bad ones. When you have a decade-long pattern of evidence that decision-making is driven by animus and greed, blaming all the bad outcomes on stupidity or insanity devolves into hand-wringing helplessness instead of a willingness to take the necessary action. Hence the current Congressional Democratic non-policy of condemning Trump but also just waiting for him to die rather than trying to mount any serious effort to remove him.