You must be the last person in the country to believe that, how touching.
Profits were privatised, loses were nationalized, it was a lose/ lose scenario for all but a very few who made millions.
Fares here are 6 times what they were in 1985 in monetary terms and double in real terms once you take inflation into account.
I think that rising subsidies up to de-regulation and their subsequent reduction is a matter of record. The losses were already nationalised, and there were precious little profits anywhere to be privatised. It most certainly wasn't a lose / lose scenario for all - it mattered little to the large, and ever increasing, number of people who had already deserted buses, and no doubt pushed some more to make the same move, which they would not be tempted back from now.
The regulated system had long been failing the bus industry and its future. Sure privatisation and de-regulation were also about reducing Government involvement in the economy, at a time when this was the Government policy at the time in most sectors. Yes some people made millions, but when you look at who they were it was mostly canny industry managers who happened to be in the right place at the right time. At employee buy out companies lots of staff did quite well when they sold out very quickly. The moves that made the big money - consolidating Depots, moving to out-of-town sites etc could have been done by the nationalised companies, but with subsidies and TU power there was no incentive. As to the profits from actually running buses it is pretty clear where they came from over the previous regime - reduced costs (admin overheads and drivers pay and conditions), getting out of uneconomic mileage much of which was not replaced and (less so) changed/new services that would have been difficult in the regulated environment.
I suspect that your fares being double in real terms is the joint effect of reduction in subsidy, increased costs more than inflation for a variety of reasons, reduced productivity [fewer passengers per trip] and the effect of the ENCTS re-imbursement rules.
However, none of this makes any difference to the bus driver shortages now. Increasing the wage bill (whether through money or terms and conditions or both) will result in fewer buses running, as subsidies are unlikely to be increased, or passengers paying higher fares. Which is the same effect as running fewer buses because there is insufficient staff to recruit at current wages, but just more expensive!